Unassociated Document

(1)	Figures presented in this table differ from those presented in the tables titled “Composition of Tax Revenues” because they were calculated using different methodologies and because they are published after the figures in the “Composition of Tax Revenues” table and thus reflect updated information.

(2)	Includes sale of goods and services of the public administration, operational revenues, transfers from the Central Bank, current transfers and other transfers.

(3)	Excludes revenues from privatization.

(4)

The Government pays for certain of its expenditures by issuing bonds known as Bocones. Bocones constitute bonds to be paid in the future rather than cash payments, and are therefore not included under cash basis expenditures. The amount of such Bocones issued in 2004, 2005, 2006, 2007 and 2008 was Ps.624.8 million, Ps.2.2 billion, Ps.3.5 billion, Ps.3.1 billion and Ps.2.6 billion, respectively. For a description of these security arrangements, see “—Debt Management Following the 2001 Debt Crisis.”

(5)	Includes transfers to the private sector (including subsidies), to the public sector (e.g., transfers to universities), to the Heads of Households Program and to state-owned companies.

(6)	For 2004, includes only interest payments on debt not subject to the suspension of debt payments. From 2005 to 2008, also includes interest payments on bonds issued pursuant to the 2005 Debt Exchange.

(7)	Figures presented under “Social security” in this table differ from those presented in the table titled “Composition of National Public Expenditures” because they were calculated using different methodologies.

(8)	Revenues for 2008 and 2009 include pension contributions resulting from the Argentine Integrated Pension System.

Source: Ministry of Economy.

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National Public Accounts

(as a percentage of nominal GDP)

	2004			2005			2006			2007			2008(8)			2009(8)
Fiscal revenue
Current revenue:
National Administration taxes(1)		18.7	%		19.2	%		19.0	%		20.1	%		21.0	%		20.0	%
Social security tax(1)		3.3			3.5			3.9			5.5			5.3			6.9
Net operating result from state-owned enterprises	n.m.			n.m.			n.m.				0.0			(0.1	)		(0.1	)
Other non-tax revenue (2)		1.5			1.0			1.3			1.2			1.4			2.9
Capital revenue(3)	n.m.			n.m.			n.m.				0.0			0.1			0.0
Total fiscal revenues		23.4	%		23.7	%		24.2	%		26.8	%		27.7	%		29.6	%
Primary expenditures(4)
Current expenditures:
National Administration wages		2.1	%		2.1	%		2.2	%		2.3	%		2.4	%		3.0
Goods and services		0.8			0.9			0.7			0.8			0.8			1.0
Social security(7)		5.1			4.7			4.9			6.2			6.3			7.4
Transfers to provinces		6.8			7.1			6.9			7.2			7.4			7.6
Other transfers(5)		3.4			3.4			3.4			4.3			5.2			5.6
Other expenditures	n.m.			n.m.			n.m.				0.1			0.2			0.2
Capital expenditures		1.3			1.9			2.5			2.7			2.3			3.2
Total primary expenditures		19.6	%		20.1	%		20.6	%		23.6	%		24.6	%		28.1	%

Primary fiscal balance		3.9	%		3.7	%		3.5	%		3.2	%		3.1	%		1.5	%

Interest payments(6)		1.3	%		1.9	%		1.8	%		2.0	%		1.7	%		2.2	%

Privatization proceeds	n.m.			n.m.			n.m.				0.0			0.0			0.0
Overall balance of non-financial public sector		2.6	%		1.8	%		1.8	%		1.1	%		1.4	%		(0.6	%)

________________________

n.m. = not meaningful

(1)	Figures presented in this table differ from those presented in the tables titled “Composition of Tax Revenues” because they were calculated using different methodologies and because they are published after the figures in the “Composition of Tax Revenues” table and thus reflect updated information.

(2)	Includes sale of goods and services of the public administration, operational revenues, transfers from the Central Bank, current transfers and other transfers.

(3)	Excludes revenues from privatization.

(4)

(5)	Includes transfers to the private sector (including subsidies), to the public sector (e.g., transfers to universities), to the Heads of Households Program and to state-owned companies.

(6)	For 2004, it includes only interest payments on debt not subject to the suspension of debt payments. From 2005 to 2008, it also includes interest payments on bonds issued pursuant to the 2005 Debt Exchange.

(7)	Figures presented under “Social security” in this table differ from those presented in the table titled “Composition of National Public Expenditures” because they were calculated using different methodologies.

(8)	Revenues for 2008 and 2009 include pension contributions resulting from the Argentine Integrated Pension System.

Source: Ministry of Economy.

The figures in the discussion of fiscal results below are those presented in the immediately preceding tables, with the exception of figures for revenues from social security taxes, value-added taxes (VAT), income taxes, taxes on goods and services and fuel taxes, all of which refer to figures presented in the table titled “Composition of Tax Revenues” presented in “—Tax Regime.”

Fiscal Result of 2004, as Compared to Fiscal Result of 2003

Primary fiscal balance. The Government’s finances continued to improve during 2004, with the primary surplus increasing by a total of Ps.8.6 billion, or 99.8%, to Ps.17.3 billion from Ps.8.7 billion in 2003, primarily as a result of a 36.0% increase in fiscal revenues, which was partly offset by a 27.9% increase in primary expenditures.

Fiscal revenues. In 2004, fiscal revenues (excluding proceeds from privatizations) increased 36.0% to Ps.104.9 billion, from Ps.77.1 billion in 2003, primarily as a result of an across-the-board increase in tax revenue due to the economic recovery and the Government’s efforts to reduce tax evasion. The increase in fiscal revenue reflected the following results:

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revenues from income taxes increased 45.7% to Ps.23.6 billion, from Ps.16.2 billion in 2003;

VAT collections increased 47.9% to Ps.31 billion, from Ps.21 billion in 2003;

revenue from taxes on foreign trade increased 19.7% to Ps.13.6 billion, from Ps.11.4 billion in 2003;

revenues from taxes on capital increased 24.4% to Ps.9.5 billion, from Ps.7.6 billion in 2003; and

revenues from social security taxes increased 27.9% to Ps.13.6 billion, from Ps.10.6 billion in 2003.

Other non-tax revenues (including results from state-owned enterprises, capital revenues and other non-tax revenues), increased in the aggregate by 44.0% to Ps.6.7 billion, from Ps.4.7 billion in 2003, representing 6.4% of total fiscal revenues in 2004.

Primary expenditures. In 2004, primary expenditures increased 27.9% to Ps.87.6 billion, from Ps.68.5 billion in 2003, primarily as a result of an across-the-board increase in Government expenditures. The increase in primary expenditures reflected the following results:

transfers to the provinces increased 48.6% to Ps.30.6 billion, from Ps.20.6 billion in 2003, primarily as a result of an overall increase in fiscal revenues;

other transfers (including export and private sector subsidies, and transfers to autonomous public entities such as universities) increased 13.4% to Ps.15.2 billion, from Ps.13.4 billion in 2003, primarily as a result of the increase in salaries of university employees, subsidies to Líneas Aéreas Federales S.A. (a national airline created in 2003) and Entidad Binacional Yaciretá (a binational hydroelectric dam built on the border with Paraguay) and transfers to provincial mutual funds;

social security outlays increased 17.5% to Ps.22.9 billion, from Ps.19.5 billion in 2003, primarily as a result of the gradual increase in benefits, among others a 10% increase in benefits applicable to monthly incomes up to than Ps.1,000, which was reflected in a minimum benefit of Ps.308;

National Administration wages increased 8.8% to Ps.9.5 billion, from Ps.8.7 billion in 2003, primarily as a result of a Ps.150 increase in monthly employees’ salaries of up to Ps.1,000, and an increase in wages of defense employees, pursuant to a plan to improve defense and justice services (Plan Estratégico de Justicia y Seguridad); and

capital expenditures increased 81.5% to Ps.5.8 billion, from Ps.3.2 billion in 2003, primarily as a result of a direct Government investment intended to promote economic activity.

Overall fiscal balance. In 2004, the Government achieved an overall fiscal surplus of Ps.11.7 billion, compared to a Ps.1.8 billion surplus in 2003, primarily as a result of the increase in the Government’s primary balance. Interest expense on the Government’s debt decreased 17.1% to Ps.5.7 billion, although the total amount of interest payments was still 43.9% lower than at the peak of the fiscal crisis in 2001. This decrease was primarily a result of the Government’s continued suspension of debt payments on a substantial portion of its debt. There were no significant revenues from privatizations in 2004.

Fiscal Result of 2005, as Compared to Fiscal Result of 2004

Primary fiscal balance. The Government’s finances continued to improve during 2005, with the primary surplus increasing by a total of Ps.2.3 billion, or 13.2%, to Ps.19.6 billion from Ps.17.3 billion in 2004. This improvement was primarily a result of a 20.4% increase in fiscal revenues, which was offset by a 21.8% increase in primary expenditures.

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Fiscal revenues. In 2005, fiscal revenues (excluding proceeds from privatizations) increased 20.4% to Ps.126.3 billion, from Ps.104.9 billion in 2004. This growth was primarily a result of an across-the-board increase in tax revenue due to the economic recovery and the Government’s efforts to reduce tax evasion. The increase in fiscal revenue reflected the following results:

revenues from income taxes increased 24.0% to Ps.29.2 billion, from Ps.23.6 billion in 2004;

revenues from VAT taxes increased 19.0% to Ps.36.8 billion, from Ps.30.9 billion in 2004;

revenue from taxes on foreign trade increased 19.7% to Ps.16.3 billion, from Ps.13.6 billion in 2004;

revenues from taxes on capital increased 20.2% to Ps.11.4 billion, from Ps.9.5 billion in 2004; and

revenues from social security taxes increased 28% to Ps.17.4 billion, from Ps.13.6 billion in 2004.

Other non-tax revenues (including sales of goods and services by the public administration, revenues from operations, revenues from properties, current transfers and other non-tax revenues), decreased in the aggregate by 19.0% to Ps.5.5 billion, from Ps.6.7 billion in 2004, representing 4.3% of total fiscal revenues in 2005, primarily as a consequence of decreases in revenues from properties and other non-tax revenues.

Primary expenditures. In 2005, primary expenditures increased 21.8% to Ps.106.7 billion, from Ps.87.6 billion in 2004, primarily as a result of an across-the-board increase in Government expenditures. The increase in primary expenditures reflected the following results:

transfers to the provinces increased 23.4% to Ps.37.7 billion, from Ps.30.6 billion in 2004, primarily as a result of an overall increase in fiscal revenues;

other transfers (including export and private sector subsidies, and transfers to autonomous public entities such as universities) increased 17.3% to Ps.17.9 billion, from Ps.15.2 billion in 2004, primarily as a result of the Government’s policy of price control of certain goods and services, among others, the fares applicable to trains, subways and buses (for which the Government granted subsidies to providers), and the increase in salaries of university employees;

social security outlays increased 8.9% to Ps.24.9 billion, from Ps.22.9 billion in 2004, primarily as a result of the adjustment of the purchasing power of benefits for retired personnel, increasing the minimum benefit to Ps.350 per month and creating an additional subsidy of Ps.40;

National Administration wages increased 19.2% to Ps.11.3 billion, from Ps.9.5 billion in 2004, primarily as a result of the adjustment of public employees’ salaries, which included a 20% increase in such salaries implemented in 2005; and

capital expenditures increased 72.7% to Ps.10.0 billion, from Ps.5.8 billion in 2004, primarily as a result of direct Government investment intended to promote economic activity.

Overall fiscal balance. In 2005, the Government achieved an overall fiscal surplus that totaled Ps.9.4 billion, compared to a Ps.11.7 billion surplus in 2004. The decrease in the surplus was primarily a result of the increase in the Government’s interest expense, which increased 79.6% to Ps.10.2 billion. There were no significant revenues from privatizations in 2005.

Fiscal Result of 2006, as Compared to Fiscal Result of 2005

Primary fiscal balance. The Government’s finances continued to improve during 2006, with the primary surplus increasing by a total of Ps.3.5 billion, or 18.0%, to Ps.23.2 billion from Ps.19.6 billion in 2005. This improvement was primarily a result of a 25.3% increase in fiscal revenues, which was offset by a 26.6% increase in primary expenditures.

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Fiscal revenues. In 2006, fiscal revenues (excluding proceeds from privatizations) increased 25.3% to Ps.158.2 billion, from Ps.126.3 billion in 2005. This increase was primarily a result of an across-the-board increase in tax revenue due to the economic recovery, an increases in consumption and employment rates, which increased revenues from VAT and income taxes, and from higher prices for Argentina’s export products, which increased revenues from export taxes. The increase in fiscal revenue reflected the following results:

revenues from income taxes increased 19.0% to Ps.34.8 billion, from Ps.29.2 billion in 2005;

revenues from VAT taxes increased 27.8% to Ps.47.1 billion, from Ps.36.8 billion in 2005;

revenue from taxes on foreign trade increased 23.0% to Ps.20.1 billion, from Ps.16.3 billion in 2005;

revenues from taxes on capital increased 22.4% to Ps.14.0 billion, from Ps.11.4 billion in 2005; and

revenues from social security taxes increased 42.2% to Ps.24.7 billion, from Ps.17.4 billion in 2005.

Other non-tax revenues (including results from state-owned enterprises, capital revenues and other non-tax revenues), increased in the aggregate by 53.5% to Ps.8.4 billion, from Ps.5.5 billion in 2005, representing 5.3% of total fiscal revenues in 2006.

Primary expenditures. In 2006, primary expenditures increased 26.6% to Ps.135.1 billion, from Ps.106.7 billion in 2005, primarily as a result of an across-the-board increase in Government expenditures. The increase in primary expenditures reflected the following results:

transfers to the provinces increased 19.4% to Ps.45.0 billion, from Ps.37.7 billion in 2005, primarily as a result of an overall increase in fiscal revenues;

other transfers (including export and private sector subsidies, and transfers to autonomous public entities such as universities) increased 22.8% to Ps.22.0 billion, from Ps.17.9 billion in 2005, primarily as a result of the Government’s policy of price control of certain goods and services, among others, the fares applicable to trains, subways and buses;

social security outlays increased 29.3% to Ps.32.2 billion, from Ps.24.9 billion in 2005, primarily as a result of the adjustment of the purchasing power of benefits for retired personnel, increasing the minimum benefit to Ps.470 per month and an across-the-board increase of 11% to all public sector pensioners;

National Administration wages increased 26.3% to Ps.14.3 billion, from Ps.11.3 billion in 2005, primarily as a result of the adjustment of public employees’ salaries, which included a 19% increase in such salaries implemented in 2006 in two steps: a 10% increase beginning in on June 1, 2006 and a further 9% increase beginning on August 1, 2006. There were 296,689 national public sector employees as of December 31, 2006; and

capital expenditures increased 64.5% to Ps.16.5 billion, from Ps.10.0 billion in 2005, primarily as a result of direct Government investment intended to promote economic activity.

Overall fiscal balance. In 2006, the Government achieved an overall fiscal surplus that totaled Ps.11.6 billion, compared to a Ps.9.4 billion surplus in 2005, primarily as a result of the decrease in the Government’s interest expense. There were no significant revenues from privatizations in 2006.

Fiscal Result of 2007, as Compared to Fiscal Result of 2006

Primary fiscal balance. The Government’s finances continued to improve during 2007, with the primary surplus increasing 10.8% to Ps.25.7 billion from Ps.23.2 billion in 2006. This improvement was primarily a result of a 38.0% increase in fiscal revenues, which was offset by a 43.0% increase in primary expenditures. The primary fiscal surplus met the goals established in the budget in both nominal terms and as a percentage of nominal GDP.

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Nevertheless, as a result of the faster growth in primary expenditures, as compared to that of total fiscal revenues, the primary surplus decreased from 3.5% of nominal GDP in 2006 to 3.2% of nominal GDP in 2007.

Fiscal revenues. In 2007, fiscal revenues (excluding proceeds from privatizations) increased 38.0% to Ps.217.7 billion, from Ps.158.2 billion in 2006. This increase was mainly driven by “traditional taxes,” including:

an increase in revenues from VAT, which accounted for 26.2% of the total increase;

an increase in revenues from income tax, which accounted for 15.9% of the total increase; and

an increase in revenues from social security tax, which accounted for 32.1% of the total increase.

Traditional taxes represented 82.9% in the aggregate of the total fiscal revenues in 2007. Revenue from taxes on foreign trade increased 37.8% to Ps.27.7 billion during 2007, from Ps.20.1 billion in 2006, representing 12.7% of total fiscal revenues. During 2007, the level of tax collections continued to improve as a result of strong economic growth and the increased efficiency of the tax collection system. In 2007, Argentina collected Ps.202.0 billion in taxes.

Primary expenditures. In 2007, primary expenditures (excluding interest payments) of the National Public Sector increased 42.2% to Ps.192.0 billion. The increase in primary expenditures reflected the following results:

other transfers (including export and private sector subsidies, and transfers to autonomous public entities such as universities) increased 58.2% to Ps.34.7 billion, from Ps.22.0 billion in 2006, mainly as a result of the Government’s policy of subsidizing and controlling the price of certain goods and services, including, among others, energy tariffs and the fares applicable to trains, subways and buses;

social security outlays increased 56.8% to Ps.50.5 billion, from Ps.32.2 billion in 2006, mainly as a result of the influx of 1.4 million new beneficiaries into the public pension system, and successive raises in pension incomes;

National Administration wages increased 30.0% to Ps.18.6 billion, from Ps.14.3 billion in 2006, mainly as a result of the adjustment of public employees’ salaries, which included a 16.5% increase in such salaries implemented in two steps: a 10% increase beginning on June 1, 2007, and a further 6.5% increase beginning on August 1, 2007. Additionally, there was a wage increase for members of the security forces, the legislative and judicial branches of the Government and scientists and researchers, among others. As of December 31, 2007, there were 312,040 national public sector employees, representing a 5.2% increase compared to 2006; and

capital expenditures increased 33.2% to Ps.21.9 billion, from Ps.16.5 billion in 2006, mainly as a result of direct Government investment intended to promote economic activity.

In 2007, subsidies to the energy, transportation, the agricultural and other private sectors represented 7.6% of the primary expenditures of the National Public Sector, which increased 125.0% in nominal terms from Ps.6.5 billion in 2006 to Ps.14.6 billion in 2007.

Overall fiscal balance. Due to the increase in fiscal revenues in 2007, the overall fiscal surplus met the goals established in the budget in both nominal terms and as a percentage of nominal GDP:

the budgetary target for the overall fiscal surplus was Ps.7.1 billion. The overall fiscal surplus exceeded this goal by reaching Ps.9.3 billion; and

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the budgetary target for the overall fiscal surplus as a percentage of nominal GDP was 1.0%. This target was met.

Fiscal Result of 2008, as Compared to Fiscal Result of 2007

Primary fiscal balance. The Government’s finances continued to improve during 2008, with the primary surplus increasing 26.7% to Ps.32.5 billion from Ps.25.7 billion in 2007. This improvement was primarily a result of a 31.5% increase in fiscal revenues, which was partially offset by a 32.1% increase in primary expenditures. The primary fiscal surplus met the goals established in the budget in both nominal terms and as a percentage of nominal GDP.

Nevertheless, as a result of the faster growth in primary expenditures, as compared to that of total fiscal revenues, the primary surplus decreased from 3.2% of nominal GDP in 2007 to 3.1% of nominal GDP in 2008.

Fiscal revenues. In 2008, fiscal revenues increased 31.5% to Ps.286.2 billion, from Ps.217.7 billion in 2007. This increase was mainly driven by “traditional taxes,” which accounted for 63.8% of the total increase. In particular, social security contributions experienced a significant change, increasing 43.6%. The increase in fiscal revenues includes:

an increase in revenues from VAT, which accounted for 25.6% of the total increase;

an increase in revenues from social security tax, which accounted for 23.3% of the total increase; and

an increase in revenues from income tax, which accounted for 15.3% of the total increase.

Traditional taxes represented 79.6% in the aggregate of the total fiscal revenues in 2008. Revenue from taxes on foreign trade increased 63.7% to Ps.45.3 billion during 2008, from Ps.27.7 billion in 2007, representing 15.8% of total fiscal revenues. During 2008, the level of tax collections continued to improve as a result of strong economic growth and the increased efficiency of the tax collection system.

Other non-tax revenue increased 51.6% from Ps. 9.7 billion in 2007 to Ps.14.6 billion in 2008, primarily due to a higher transfer of profits (utilidades) from the Central Bank, which rose from Ps.1.1 billion in 2007 to Ps.4.4 billion in 2008.

Primary expenditures. In 2008, primary expenditures (excluding interest payments) of the National Public Sector increased 32.1% to Ps.253.7 billion. The increase in primary expenditures reflected the following results:

other transfers (including export and private sector subsidies and transfers to autonomous public entities such as universities) increased 56.0% to Ps.54.2 billion in 2008 from Ps.34.7 billion in 2007, mainly as a result of the Government’s policy of subsidizing certain sectors, including the energy, transportation and agricultural sectors;

social security outlays increased 27.9% to Ps.64.6 billion in 2008 from Ps.50.5 billion in 2007, mainly as a result of a 10% increase in new beneficiaries in the public pension system and successive raises in pension incomes;

National Administration wages increased 32.6% to Ps.24.7 billion in 2008 from Ps.18.6 billion in 2007, mainly as a result of the adjustment of public employees’ salaries, which increased 10% as of June 1, 2008, and 9.5% as of August 1, 2008. As of December 31, 2008, there were 330,572 national public sector employees, representing a 5.9% increase as compared to 2007.

Capital expenditures increased 7.5% to Ps.23.6 billion, from Ps.21.9 billion in 2007, mainly as a result of direct Government investment intended to promote economic activity, including investments to improve and build new roads.

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In 2008, subsidies to the energy, transportation, agricultural and other private sectors represented 12.1% of the primary expenditures of the National Public Sector, an increase from 7.6% in 2007. This represented an increase of 111.1% in nominal terms from Ps.14.6 billion in 2007 to Ps.30.9 billion in 2008.

In the final months of 2008, the Government approved increases in the fees charged for certain public services, including fees in the transportation and energy sectors, consistent with its plan to eventually reduce or eliminate subsidies granted to these sectors. The Government created subsidies in the past, mainly in the transportation, food and energy sectors to compensate producers for losses caused by price controls. Total expenditures on subsidies will decrease gradually with the reduction and elimination of existing subsidies and price controls. Nevertheless, it is expected that subsidies will continue to represent a significant expenditure of the National Public Sector in 2009.

Overall fiscal balance. Due to the increase in fiscal revenues in 2008, the overall fiscal surplus met the goals established in the budget in both nominal terms and as a percentage of nominal GDP:

the budgetary target for the overall fiscal surplus was Ps.8.3 billion. The overall fiscal surplus exceeded this goal by reaching Ps.14.7 billion; and

the budgetary target for the overall fiscal surplus as a percentage of nominal GDP was 0.93%. This target was exceeded as the overall fiscal surplus represented 1.41% of nominal GDP.

Fiscal Result of 2009 as Compared to Fiscal Result of 2008

Primary fiscal balance. As a response to the impact of the global financial crisis, Argentina, like many other countries, implemented a countercyclical fiscal policy during 2009 in order to mitigate the effects of the shocks of the global financial crisis on the domestic economy. The primary surplus decreased from Ps.32.5 billion in 2008 to Ps.17.3 billion in 2009, representing a decrease of 47.0%. While total revenues increased 16.2% in 2009, primary expenditures increased by 24.3%. Increases in wages and pension liabilities throughout 2008 and 2009 resulted in greater expenditures than initially budgeted. One of the most significant budget increases took place in November 2009. Emergency Decree No. 1801 authorized increased budgeted expenditures of Ps.24.3 billion. Revenues also increased in 2009 (and included pension revenues from the Argentine Integrated Pension System), but at a lower rate than expenditures.

Fiscal revenues. In 2009, fiscal revenues increased 16.2% to Ps.332.7 billion, from Ps.286.2 billion in 2008, showing a deceleration as compared with previous years. This resulted mainly from the impact of the global financial crisis on the local economy and the drought that undermined the harvest.

This increase was mainly driven by “traditional taxes,” which accounted for 69.9% of the total increase. The increase in fiscal revenues includes:

an increase in revenues from VAT, which accounted for 15.4% of the total increase; and

an increase in revenues from social security taxes, which accounted for 49.9% of the total increase.

Traditional taxes represented 74.8% in the aggregate of total fiscal revenues in 2009. Revenue from taxes on foreign trade decreased by 12.3% from Ps.45.3 billion in 2008 to Ps. 39.7 billion in 2009. During 2009, the level of tax collection continued to grow but at a lower pace than in previous years as a consequence of the impact of the global financial crisis in domestic activity.

Other non-tax revenues increased from Ps. 14.7 billion to Ps. 32.6 billion, representing a 123% increase in 2009 as compared to 2008. The increase was due to transfers of profits (utilidades) from the Central Bank and the inflow of funds relating to the allocation of Special Drawing Rights (SDRs) by the IMF, that resulted from the G-20 meeting on global economic recovery that occurred in April 2009.

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Primary expenditures. In 2009, primary expenditures (excluding interest payments) of the national public sector increased 24.3% from Ps.253.7 billion to Ps.315.4 billion. This increase was mainly due to the following:

social security outlays increased 29.0% from Ps.64.6 billion in 2008 to Ps. 83.2 in 2009, mainly as a result of two successive raises in pension incomes in March 2009 (11.7%) and September 2009 (7.34%), in line with Law No. 26,417;

National Administration wages increased 36.8% to Ps.33.7 billion in 2009 from Ps.24.7 billion in 2008, mainly as a result of the adjustment of public employees’ salaries, which increased 8.0% as of June 1, 2009, and further increased 7.0% as of August 1, 2009. There is no updated information on the number of employees as of December 2009. Nevertheless, as of March 31, 2009 there were 333,023 national public sector employees, representing a 4.5% increase compared with the first quarter of 2008.

Capital expenditures increased 52.7% to Ps.35.9 billion, from Ps.23.6 billion in 2008, mainly as a result of direct Government investment intended to promote economic activity, including investments to improve and build new roads. These investments were consistent with the Government’s active fiscal policy aimed at lessening the negative impact of the global financial crisis on the real economy.

Overall fiscal balance. Due to a higher increase in total expenditures than in revenues, the overall fiscal balance showed a deficit of Ps. 7.1 billion.

Tax Regime

In Argentina, the legal authority to impose taxes is shared by Congress, the provincial legislatures and, within certain limits, the municipalities. The precise distribution of the taxing authority, however, is not clearly defined by law. The Supreme Court of Argentina, in interpreting the Argentine Constitution, has concluded that only the Government may levy taxes on external trade. The Supreme Court has also defined the federal taxing authority as generally limited to certain indirect taxes and temporary direct taxes that the Government may levy only under exceptional circumstances. Nonetheless, as a result of fundamental changes in the Argentine economy initially triggered by the global economic crisis of the 1930s, since 1935 the provinces have delegated to the Government most of their taxing authority. See “—Fiscal Relations with the Provinces.”

Federal taxes must be authorized by an act of Congress, although the executive branch is empowered to issue regulations and decrees necessary to implement congressional legislation. Argentina does not have a federal revenue code; instead, separate laws, which are amended frequently, govern different categories of taxes. The Ministry of Economy is responsible for the collection of fiscal revenues. The Ministry of Economy carries out this task mainly through the Dirección General Impositiva (the General Directorate of Taxes), a division of the AFIP, the agency that administers the Government’s tax collection and customs.

Composition of Tax Revenues

The Government levies the following taxes:

VAT on goods and services;

income taxes;

social security taxes;

taxes on foreign trade;

taxes on capital (including the tax on financial transactions);

fuel taxes; and

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other taxes (such as consumption taxes).

Traditionally, the Government has derived most of its revenue from VAT, income taxes and social security contributions. Since 2002, import and export taxes and taxes on capital have become a more significant source of revenue for the Government, as the Government has introduced various taxes in each category.

Income taxes have replaced social security contributions as the second most important source of Government revenue since 1999. Revenues from income taxes have increased sharply each year from 2004 through 2008, primarily as a result of the economic recovery.

Tax revenues for the year ended December 31, 2008, were Ps.272.1 billion representing a 34.6% increase, as compared to 2007. In 2008, the increased tax revenues in this period were primarily driven by the growth in private consumption and the increase in prices, which led to an increase in VAT revenues, the average increase in commodity prices and the depreciation of the peso, which led to an increase in import and export taxes and higher levels of tax collection efficiency. Of the total growth in tax revenue,

VAT revenues represented 25.1% of the total increase;

import and export tax revenues represented 25.2% of the total increase;

social security taxes revenues represented 22.8% of the total increase; and

income tax revenues represented 15.0% of the total increase.

Tax revenues amounted to Ps.303.7 billion in 2009, an increase of 11.6% compared to 2008. This trend reflected a lower growth rate than in the 2004-2008 period, during which the average annual growth rate was 30.0%. This decrease was mainly due to the effects of the global financial crisis on external trade and its spillover effect on tax revenues.

During this period:

VAT increased only 8.9% as a result of a 21.8% increase in the national tax bureau VAT that grew at a slower pace than in the same period in 2008, and a 16.8% fall in customs VAT primarily as a result of the contraction of imports.

Income tax increased 1.5% fueled by the performance of the domestic economy, the elimination of the scale of declining deductions for tax calculation purposes for individuals and changes in contributions to the social security system for employees.

Duties on foreign trade reflected the impact of the global financial crisis on the volumes and prices of the main taxable assets, showing a decrease of 12.3% as compared to the same period in 2008.

Offsetting the trend exhibited by these tax revenues, social security revenues increased by 44.1%, mainly as a result of the increase in taxable wages and as a result of the Argentine Integrated Pension System.

The following tables set forth the composition of the Government’s tax revenues for the periods specified.

Composition of Tax Revenues

(in millions of pesos)

	2004			2005			2006			2007			2008			2009(3)
VAT	Ps.	30,977		Ps.	36,853		Ps.	47,104		Ps.	62,669		Ps.	80,229		Ps.	87,386
Other taxes on goods and services		4,104			4,742			5,548			6,373			7,507			9,540
Social security taxes		13,599			17,400			24,747			36,606			52,565			75,743
Taxes on income		23,560			29,203			34,764			44,226			54,722			55,552
Corporate income tax		16,309			19,602			22,911			29,145			33,923		n.a
Personal income tax		6,163			8,192			9,987			12,777			17,624		n.a
Others		1,088			1,409			1,866			2,304			3,176		n.a
Import and export taxes		13,642			16,328			20,089			27,679			45,306			39,741
Taxes on capital(1)		9,515			11,439			13,996			18,011			23,384			25,056
Fuel taxes		5,380			6,019			6,574			7,469			9,701			11,593
Others		693			877			1,399			1,102			1,593			1,550
Gross total(2)		101,469			122,861			154,220			204,134			275,007			306,162
Drawbacks		(1,564	)		(1,885	)		(1,965	)		(1,913	)		(2,894	)		(2,451	)

Net total	Ps.	99,905		Ps.	120,976		Ps.	152,255		Ps.	202,221		Ps.	272,113		Ps.	303,711

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(1)	Includes the tax on financial transactions, which generated revenues of Ps.7.7 billion in 2004, Ps.9.4 billion in 2005, Ps.11.7 billion in 2006, Ps.15.1 billion in 2007 and Ps.19.5 billion in 2008.

(2)	Drawbacks are included in the gross total.

(3)	Preliminary figures.

n.a =not available

Source: Ministry of Economy.

The information below is a brief description of the principal taxes levied by the Government, except for social security taxes. For a description of social security taxes see “—Social Security.”

Value Added Tax

The Value Added Tax (VAT) is a tax levied on the sales of goods and services within Argentina, and the rendering of services abroad when the effective use of those services takes place in Argentina and the user is registered as a VAT taxable person.

As of the date of this annual report, the standard VAT rate is 21%. An increased rate of 27% applies to the provision of gas, electricity, water, sewage, and telecommunications services for non-residential purposes. A reduced rate of 10.5% applies in certain cases, including, among others, housing projects, the sale of livestock and other agricultural products, the sale of capital goods and certain financial revenues and expenses.

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VAT revenues increased 28.0% in 2008, as compared to 2007, mainly due to the growth in private consumption, the increase of prices and higher levels of tax collection efficiency. During 2009, VAT revenues registered only an 8.9% increase as compared to 2008, primarily as a result of the economic slowdown and the impact of the global financial crisis.

Other Taxes on Goods and Services

The Government also levies a variety of taxes on the consumption of certain goods and services. The following table sets forth a sample of the tax rates applicable to certain products.

Composition of Taxes on Goods and Services

Product	Rate (%)
Tobacco products		16 – 60
Alcoholic beverages		8 – 20
Non-alcoholic beverages (including extracts, concentrates and mineral water)		4 – 8
Luxury items		20
Recreational sporting equipment (including private planes and yachts)		4 – 8
Electronic products		17
Cars, engines and motorcycles		5-10

________________________

Source: Ministry of Economy.

Taxes on Income

Argentine legal residents and corporations domiciled in Argentina are subject to income tax on their worldwide income. Nonresidents are subject to tax only on income from Argentine sources.

The income of national, provincial or local authorities, as well as non-profit organizations (including cooperatives, religious institutions and foundations) is not subject to income tax. The Government also provides tax exemptions or incentives for projects carried out in certain locations, such as Tierra del Fuego, and for certain economic activities, such as public transportation and garbage collection.

There are three categories of taxes on income in Argentina:

Impuesto a las ganancias (income tax). For resident individuals, the rate of this tax varies according to income level, ranging from 9% to 35% (the latter applying to annual net income exceeding Ps.120,000). For non-resident individuals and for all business entities, the rate is 35%. Alternatively, individuals whose annual income (or whose employers’ annual income) is less than a statutorily provided limit may opt to pay a monotributo (single-presumptive tax), which is a fixed amount calculated on the basis of employment categories.

Gravamen de emergencia sobre premios de determinados juegos de sorteos y concursos deportivos (emergency tax on lotteries and gaming proceeds). The rate of this tax is 31% and it is levied on winnings from lotteries and games of Ps.1,200 or greater.

Impuesto a la Ganancia Mínima Presunta (presumptive minimum income tax). Subject to certain exceptions, a 1% tax is levied on the value of certain assets held by businesses and other entities at the end of each fiscal year. Amounts paid on the income tax are deductible from this tax.

Of these three categories, the income tax is the most significant source of Government revenue, accounting on average for 22.5% of total tax revenues from 2004 through 2008. In 2009, the income tax accounted for 18.3% of total tax revenues.

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Taxes on Foreign Trade

Taxes on foreign trade consist of export and import taxes. Import taxes are levied on goods and services imported into Argentina for consumption. They are assessed either ad valorem (i.e., on the actual value of the good or service) or based on CIF official prices (i.e., the cost of the good or service, plus insurance and freight to the destination), whichever is higher. Rates for import taxes range from 0% to 20% for most goods and services, except for taxes applied to the “vehicle and transport” sector, where the maximum rate is 35%. Certain products, such as textiles, footwear and toys, are exempt from import taxes. An additional tax applies to imports from non-Mercosur countries.

Export taxes were introduced in 2002. The standard export tax rate for most products ranges from 5% to 20%, with an additional rate of 3.5% to 5% for certain products based on the FOB value of the product. Export taxes have become an important source of revenue for the Government since 2003, primarily as a result of the high international prices for commodities and the devaluation of the peso, which have increased the competitiveness and value of Argentina’s U.S. dollar exports in pesos. Set forth below are the export tax rates that were in effect as of September 30, 2009:

exports of crude oil and fuels:

if the international price per barrel is between U.S.$45 and U.S.$60.90 for crude oil and between U.S.$78 and U.S.$113 for fuel, the export tax applicable is 45%; and

if the international prices are higher than U.S.$60.9 for crude oil and U.S.$113 for fuel, the export tax is calculated according to the following formula:

where D is export tax, PI is international price and VC is price cut (maximum net amount that exporter can be paid);

35% on exports of oilseeds from soy;

32% on exports of oilseeds from sunflowers;

30% on exports of sunflower oils and other products derived from sunflowers;

32% on exports of soy oils and other products derived from soy;

5%-10% on exports of certain regional products such as fruits, honey, rice and vegetables;

0% on exports of dairy products;

15% on exports of meat, hides and skins;

100% on exports of natural gas; and

5% on all other exports.

Import and export tax revenues increased 63.7% in 2008 as compared to 2007 as a result of the average increase in commodity prices in 2008 and the depreciation of the peso in 2008.

During 2009, import and export taxes decreased 12.3% from Ps. 45.3 billion in 2008 to Ps. 39.7 billion in 2009, as a result of a decrease in commodity prices and export volumes together with a reduction in local economic activity. This decrease was partially offset by an increase in the average nominal exchange rate (from Ps. 3.16 in 2008 to Ps. 3.73 per U.S.$1.00 in 2009), changes in the payment system applicable to the main agricultural products and changes in the composition of exports (with a higher share of exports consisting of products subject to higher tax rates).

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In 2007, export taxes on agricultural products (including processed agricultural products) accounted for 44.6%, and export taxes on fuel products accounted for 16.2%, of all export tax revenues. In 2008, export taxes on agricultural products (including processed agricultural products) accounted for 41.2%, and export taxes on fuel products accounted for 29.0%, of all export tax revenues. The decline of export taxes on agricultural products as a percentage of total export tax revenues was primarily a result of the decrease in commodities prices in the third quarter of 2008 and a decrease of export volumes mainly due to farmer protests. The increase of export taxes on fuel as a percentage of total export tax revenues was mainly a result of the increase in the applicable tax rate in November 2007 and the average increase of fuel prices in 2008.

The Government raised tax rates on oil, cereal and grain exports in November 2007 and introduced a variable tax on cereal and grain exports, which replaced a fixed-rate tax. These increases generated protests from farmers and the variable tax on cereal and grain export was abolished by Congress in October 2008. The Government introduced new changes to the marginal rate of the exports tax, aimed to reduce payers’ burden. See “The Argentine Economy—Primary Production.”

In the first half of 2008, export taxes on agricultural products represented 41.0% of total export taxes and export taxes on fuel products represented 31.9% of total export taxes. For the same period in 2009, export taxes on agricultural products represented 36.3% of total export taxes and export taxes on fuel products represented 21.6% of total export taxes. The share of total export taxes stemming from fuel products was reduced, primarily due to lower oil price that not only affects the taxable amount but also reduces the chargeable tax rate.

Taxes on Capital

Taxes on capital include taxes on the value of personal assets owned by individuals, taxes on the net worth of credit unions, a tax on the sales of real estate and the tax on financial transactions.

The tax on financial transactions was introduced in 2001 and has become an important source of revenue for the Government. The tax is levied on the full amount of most financial transactions, with certain limited exemptions. The standard tax rate is 0.6% for credits and debits from checking accounts and 1.2% for transfers of funds. The tax on financial transactions was originally scheduled to expire in December 2004, but Congress extended such date on three occasions. As a result, the tax on financial transactions will be in force until December 31, 2011.

Taxes on Fuels

The Government levies taxes on the sale of various fuels, including liquid fuels, such as gasoline and diesel, and compressed natural gas. The tax on the sale of liquid fuels is generally levied on importers, refineries and distributors and ranges from 19% to 70% of the net sales price depending on the type of fuel. The tax on compressed natural gas is levied on distributors at a rate of 16% of the sales price paid by the end consumer.

Tax Enforcement

Argentina historically has had a low rate of tax collection. The Government has taken steps to improve its level of tax collection since 2003. The main programs introduced by the Government to improve tax collection efficiency are described below.

Anti-Evasion Program

Phase I of Plan Antievasión (Anti-evasion Program) was approved by Congress in October and December 2003 and seeks to improve tax collections through the following measures:

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Facilitating prosecutions and increasing sanctions. Phase I of the Anti-evasion Program increased sanctions and facilitated prosecutions for tax evasion. For instance, Phase I increased the sanctions for providing false information on sales prices.

Enhancing the AFIP’s monitoring powers. Phase I increased the AFIP’s enforcement powers by enhancing its monitoring functions. To this effect, it introduced several measures, including the following:

a “risk registry” to track the tax-compliance profile of taxpayers;

procedures for the use of certain financial instruments that facilitate tax evasion;

mandatory inquiries via the Internet to verify the veracity of invoices; and

an increase in the AFIP’s auditing functions.

Phase II of the Anti-evasion Program was approved by Congress in June 2005. It focuses on increasing the AFIP’s monitoring functions over unregistered employment, unregistered economic transactions, violation of intellectual property rights and the reduction of the term of investigative and recovery proceedings. To this effect, it introduced several measures, including the following:

the amendment of the Customs Code of Argentina, increasing the penalties for smuggling and prohibiting imports or exports of counterfeited goods;

the implementation of a consumer billing control system, which includes the creation of the “control inspector,” a public official who can act as a consumer and, in case of not receiving a proper bill, impose a fine of Ps.300 to Ps.30,000 and temporarily close the store for a period of three to 10 days; and

the clarification of certain rules relating to social security contributions, including the deductibility for income tax purposes of salaries paid to housemaids and servants.

Tax Regularization and Capital Repatriation Program

On December 18, 2008, Congress enacted a law that established a tax regularization and capital repatriation program. The law includes incentives for:

the regularization and repatriation of funds held overseas;

the regularization of funds held domestically;

the regularization of unregistered labor relationships; and

the hiring and registering of new employees.

The incentives, subject to compliance with certain conditions, include:

reduction of applicable tax rates on repatriated or local non-declared funds to a range of 1% to 8% (from an otherwise applicable rate of approximately 35%). In addition, part of the funds that are repatriated will be exempted from the non-remunerated deposit requirement on certain capital inflows of foreign currency imposed in June 2005;

elimination of fines and penalties and partial debt forgiveness for taxpayers who regularize their tax debts for fiscal periods prior to December 31, 2007, including the possibility of paying the debt in 120 monthly installments;

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reduction of employees’ social security contributions payable by employers for the first 24 months counting as of the date the new employee is hired or regularized; and

elimination of fines, penalties and partial debt forgiveness for the regularization of up to 10 unregistered employees, and the elimination of fines and partial debt forgiveness for the regularization of a number of 10 to 15 employees.

The regularization of unregistered labor relationships was to be in force through August 31, 2009, but was extended for 180 days. The other programs were valid through August 31, 2009.

Fiscal Regularization Program

On December 15, 2009, the Government announced a fiscal regularization program with respect to tax, social security and customs related payments that were due between January 1, 2008 and October 31, 2009. The fiscal regularization program will be in force until February 28, 2010.

Composition of Public Expenditures

Public sector expenditures include general administrative expenses, debt service payments, investments in public infrastructure and services, expenditures related to defense and security, administrative expenses of the judiciary and social program expenditures.

The following table sets forth the National Administration’s public expenditures for the periods specified, calculated using an accrual method, which computes revenues and expenditures in the periods in which they are accrued, regardless of the period in which cash flows take place. This method differs from the cash-basis we use to calculate national public accounts. See “Scope and Methodology.”

Composition of National Public Expenditures(1)

(in millions of pesos)

	2004		2005		2006		2007		2008
General administration	Ps.	3,824	Ps.	4,309	Ps.	4,765	Ps.	4,579	Ps.	5,936
Defense and security		5,201		5,958		7,066		8,673		10,822
Justice		1,058		1,331		1,644		2,045		2,825
Social programs		43,647		52,777		66,361		85,397		110,117
Social security(3)		26,098		30,565		38,235		56,570		74,033
Culture, education, science and technology		5,089		6,657		9,355		13,448		16,439
Health		2,624		2,830		3,572		5,074		6,724
Housing		1,431		3,457		4,966		4,217		5,703
Social welfare		4,494		5,684		7,084		3,452		4,660
Labor		3,911		3,583		3,148		2,636		2,558
Public expenditures on economic infrastructure		6,005		11,830		15,797		24,474		41,604
Public debt service(2)		5,888		12,094		12,170		17,253		21,670
Total	Ps.	65,623	Ps.	88,298	Ps.	107,803	Ps.	142,421	Ps.	192,974

(1)	Figures calculated using the accrual method

Source: Ministry of Economy.

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Revenue Transfers

The Co-Participation Law of 1988, as amended in 2002, governs the current co-participation regime. Originally intended as a temporary measure, the 1988 Co-Participation Law has been automatically renewed every year since it was due to expire at the end of 1989. Although the 1994 amendments to the Constitution called for the adoption of a new co-participation law by 1996, none has been adopted. Since the mid-1980s, the executive branches of the Government and the provinces have maintained consensual agreements concerning revenue transfers, which Congress has routinely ratified, thus giving them the force of law. The Federal Tax Commission (Comisión Federal de Impuestos), a federal agency created pursuant to the Co-Participation Law, monitors compliance with the co-participation regime.

Since 2002, co-participation funds are allocated as follows:

56.66% to the provinces;

40.24% to the Government and the city of Buenos Aires;

2.1% to be divided among certain provinces to compensate them for losses suffered as a result of fiscal imbalances caused by prior co-participation arrangements; and

1% to a fund created in 1998 to correct provincial fiscal imbalances or grant emergency aid to the provinces by making transfers to any affected province from the National Treasury, which we call the “ATN Fund.”

In exchange, the Government agreed to share with the provinces 30% of the revenues generated through the tax on financial transactions introduced in 2001.

In addition to the co-participation regime, several other revenue-distribution arrangements exist between the Government and the provinces. These special distribution arrangements include the following:

Income tax. Revenues from the income tax are allocated as follows:

20% to the national social security system;

14% to the provinces, of which up to Ps.650 million may be directed to the province of Buenos Aires and the balance to all the other provinces;

2% to the ATN Fund; and

64% to be distributed as provided in the 1988 Co-Participation Law, as amended in 2002.

VAT. VAT revenues are allocated as follows: 10.31% to the national social security system, 0.69% to provincial social security funds and the remaining 89% to be distributed as provided in the Co-Participation Law.

Taxes on personal goods. Revenues from taxes on personal goods are allocated as follows: 6.27% to provincial social security funds and 93.73% to be distributed as provided in the Co-Participation Law.

Taxes on fuels. Revenue from most taxes on fuels are allocated to the national social security system, except for revenues from taxes on naphtha and natural gas, which are divided among the national social security system, the Government, the provinces and the Fondo Nacional de la Vivienda, or FONAVI (National Housing Fund).

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Presumptive minimum income tax. Revenues from the presumptive minimum income tax are allocated as provided in the Co-Participation Law.

Tax on financial transactions. Revenues from taxes on financial transactions are allocated as follows:

70% to the National Treasury; and

30% is distributed as provided by the Co-Participation Law.

Monotributo (Self-employment tax). Revenue from Monotributo is divided into a tax component and a social security component. The tax component is allocated as follows: 70% to the national social security system and 30% is distributed as provided by the Co-Participation Law. The social security component is entirely allocated to the national social security system.

Fondo Federal Solidario (Joint Federal Fund). In March 2009, the Government created the Fondo Federal Solidario for infrastructure expenditures in the provinces and municipalities, which is financed by 30% of the tax revenues from soy exports. These funds are distributed among the provinces as provided in the Co-Participation Law.

Other Arrangements with the Provinces

During the late 1990s and since 2000, the Government has launched several programs and entered into different arrangements with the provinces to regularize their fiscal situation. Some of these programs provide financial assistance to the provinces in one form or another subject to fiscal tightening measures. Others are tied to the revenue-sharing arrangements between the Government and the provinces. We highlight below some of these programs.

Programa de Financiamiento Ordenado (Ordered Financing Program). In 2002, the Government created this program as part of a broader initiative to provide financial assistance to the provinces. Pursuant to this program, between 2002 and 2004 the Government signed bilateral fiscal agreements with a number of provinces (including the city of Buenos Aires), under which:

the Government provides loans from the Provincial Development Fund to signatory provinces conditioned upon the province’s adoption of spending controls and other administrative reforms. The proceeds from these loans may be used by the provinces only for the following purposes:

reduction of fiscal deficits;

payments of principal on outstanding debt; and

payment of unpaid salaries to provincial public employees and past due payments owed to providers of essential goods and services;

signatory provinces agree to comply with all financial conditions to which the Government is subject under its financing arrangements with multilateral lending institutions; and

signatory provinces commit to:

establishing limits on floating-rate debt;

establishing monthly or quarterly fiscal targets;

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presenting to the Government annual budgetary projections through 2005, including a description of fiscal measures necessary to maintain a balanced budget and to meet the province’s debt service obligations;

not incurring any new public indebtedness or issuing any new quasi-currency debt instruments; and

guaranteeing loan repayments by assigning to the Government their rights to receive co-participation funds.

Bogars. In 2003, the Government restructured the debts of a number of provinces through a new bond, known as Bogar, which replaced the outstanding debt of provinces participating in this restructuring. These bonds were issued by the Provincial Development Fund in an aggregate principal amount of Ps.28.2 billion, and their payment is secured through a Government guarantee. The Government’s guarantee is, in turn, secured through a pledge of its share of revenues from the tax on financial transactions and co-participation taxes. Provinces with debt that was restructured through the issuance of Bogars have an obligation to reimburse the Provincial Development Fund and, indirectly, the Government, for any amounts paid under the bonds (either directly by the Provincial Development Fund or indirectly by the Government through its guarantee). The provinces’ obligations to reimburse the Provincial Development Fund and/or the Government are secured by a pledge of up to 15% of co-participation revenues to which the provinces are entitled.

Fiscal Responsibility Law. The Fiscal Responsibility Law was enacted in 2004 and is only binding on those provinces that approved it. To date, 21 of the 23 provinces and the city of Buenos Aires have approved the Fiscal Responsibility Law. This law implements important reforms to the fiscal framework for Argentina’s national, provincial and municipal public sectors. Some of its key features include the following:

the Government and the provinces must prepare annual fiscal programs for each upcoming year setting forth certain fiscal policies, targets and projections, and regularly publish their fiscal results on their respective websites;

the growth rate of the primary expenditures of the national and provincial governments may not exceed the projected nominal GDP growth rate;

the Government and the provinces must maintain balanced budgets;

the Government and the provinces must create special anti-cyclical funds to reduce volatility in the fiscal cycle;

the provinces may not incur debt service obligations in excess of 15% of provincial current revenues net of co-participation transfers to the municipal governments (except during 2009 and 2010 as explained below); any province breaching this limit would be precluded, with certain exceptions, from incurring additional debt;

the Government must commit to reduce its outstanding debt as a percentage of nominal GDP following its debt restructuring;

the provinces must seek approval from the Government’s Ministry of Economy for incurring debt or issuing guarantees; and

the Ministry of Economy must base its approval of provincial debt issues or guarantees on the parameters set forth in the law.

The Fiscal Responsibility Law, however, does not implement any amendments to the revenue-sharing regime between the Government and the provinces (including the city of Buenos Aires).

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Congress approved an amendment to the Fiscal Responsibility Law on October 28, 2009. This amendment establishes greater flexibility of fiscal regulation for 2009 and 2010. This increased flexibility refers both to public expenditure growth and to the level of financial results. In addition, the provinces may incur debt service obligations in excess of 15% of provincial current revenues net of co-participation transfers to the municipal governments during 2009 and 2010. In light of the effects of the global financial crisis on provincial finances and the pressure on provincial governments to maintain provincial public spending at budgeted levels, this amendment aims at helping provincial governments address their fiscal deficits.

Social Security

Integration of the Pension Funds System

On October 21, 2008, the Government introduced a bill to Congress proposing to unify the hybrid public/private national pension system into a sole public pension system, the Sistema Integrado de Jubilaciones y Pensiones (Argentine Integrated Pension System). The bill sets out the legislative intent of:

addressing deficiencies in the private pension system’s performance, which included its budgetary shortfalls and high fees charged by the private companies administering the pension funds; and

promoting local investment and liquidity in Argentina’s economy.

The unification proposal provoked debate, with critics charging that the unification was a means to appropriate pension fund assets for use by the Government. On November 20, 2008, by a vote of 46 to 18, the Senate passed Law No. 26,425, and it came into effect on December 9, 2008. Law No. 26,425 unified the national pension system into the Argentine Integrated Pension System, which absorbed and replaced the former private pension system and is structured as a “pay as you go” system (Sistema Solidario de Reparto).

Pursuant to the new law, the resources administered by the private pension funds were transferred to a separate fund (Fondo de Garantía de Sustentabilidad, or “FGS”) to be administered by ANSES. The law provided that the funds transferred to the FGS shall be invested in Argentina, and “shall only be used to pay the benefits of the Argentine Integrated Pension System.” The total assets of the FGS amounted to Ps.100.4 billion as of December 31, 2008. As of November 30, 2009, the total assets of the FGS amounted to Ps.135.5 billion, a 35% increase since December 31, 2008.

Beginning in October 2008, plaintiffs in 73 actions pending against Argentina in the United States District Court for the Southern District of New York obtained orders temporarily restraining and attaching any pension fund assets in the United States. These orders were vacated on appeal in October 2009; certain plaintiffs are seeking review by the United States Supreme Court. See “Public Sector Debt—Legal Proceedings—Litigation in the United States—Attempts to attach Argentine property in U.S. Litigation.”

Social Security Framework

ANSES constitutes an autarchic entity with its own legal status, distinct from that of the National Government, and enjoys financial and economic autonomy.

Three separate institutions manage Argentina’s national public pension system:

ANSES, which oversees the pension funds of the general public;

the Instituto de Ayuda Financiera para Pago de Retiros y Pensiones Militares (Armed Forces Pension Fund), which manages a special pension fund for the armed forces; and

the Caja de Retiros, Jubilaciones y Pensiones de la Policía Federal (Federal Police Pension Fund), which manages a special pension fund for federal law enforcement personnel.

ANSES, like many other social security agencies throughout the world, including the United States and the United Kingdom, invests significant social security reserves (i.e., the excess of contributions over what is required to pay current benefits) in government issued debt. ANSES is also required to invest in Argentina consistent with the public policy of advancing economic growth and development within the country.

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As of June 30, 2009, ANSES had conducted eight auctions with respect to the new pension fund created with the private pension fund assets. Pursuant to the auction process, ANSES offered to invest the funds in fixed-term deposits in return for pledges by banks to lend the money at below-market rates to increase liquidity in the market. As of March 13, 2009, ANSES had auctioned Ps.1.8 billion and U.S.$0.5 billion for investment in fixed-term deposits destined for loans to individuals, car loans and loans to small- and medium-sized companies.

Between 1994 and 1996, the Government assumed responsibility for operating the provincial pension systems of 10 provinces and two municipalities, including the city of Buenos Aires. The Government merged these provincial pension funds into ANSES.

The current public social security system provides the following main benefits:

Prestación básica universal (Basic pension). ANSES provides a basic pension to all individuals who have paid social security contributions for a majority of their working lives and have reached retirement age, regardless of the amount of the contributions made. The amount of this benefit is fixed by law and bears no relation to the amount of the contributions.

Prestación compensatoria (Compensatory pension). ANSES also provides a compensatory pension to recipients of the basic pension in proportion to any social security contributions made by or on behalf of such recipient prior to July 1994. The amount of this supplemental pension is determined based on an individual’s social security contributions and the length of time for which contributions were made.

Prestación adicional por permanencia (Additional pension). Recipients of the basic pension and compensatory pension also receive an additional pension. The amount of this benefit is equivalent to 1.5% of the average yearly salary during the ten years before retirement, multiplied by each service year for which an individual made social security contributions.

Asignación Universal por Hijo (Universal Child Allowance): ANSES provides a monthly pension of Ps.180 per child under the age of 18 of domestic services employees, nonregistered employees and the unemployed.

Argentina’s social security system also includes the following two unemployment programs:

unemployment insurance that provides one-time or monthly benefits to terminated employees and their dependents who meet certain requirements; and

the Heads of Households program, sponsored by the World Bank, under which unemployed heads of households receive benefit payments in exchange for community service.

The national social security system is currently funded primarily through the following taxes:

payroll taxes based on employee wages (usually 11% for employees and between 17% and 21% for employers, depending on the employer’s line of business). To stimulate consumer demand, the Government implemented temporary reductions to employees’ mandatory pension contributions from November 2001 to January 1, 2008

mandatory employee contributions to the Instituto Nacional de Servicios Sociales para Jubilados y Pensionados (National Institute of Pensioner and Retiree Social Services) (equal to 3% of the employee’s wages);

the employee health system tax based on employee wages (3% for employees and 6% for employers); and

income taxes applicable to self-employed individuals (amounts are determined on an individual basis according to presumptive income ranges assigned to various lines of work).

As a result of significant deficits within the public social security system, the Government has had to turn increasingly to other sources of revenue to fund its social security expenditures. Other fiscal revenues currently allocated to cover costs of the social security system include the following:

15% of gross co-participation revenues;

Ps.120 million from annual income tax revenues plus 20% of additional income tax revenues;

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10.3% of VAT revenues;

100% of revenues from taxes on tobacco, diesel fuel, kerosene and compressed natural gas, and 21% of revenues from taxes on naphtha and natural gas;

70% of revenues from the single-presumptive tax; and

30% of gross revenues from privatizations.

Evolution of Social Security Revenues and Expenditures

From 2004 through 2008, the social security system went from a deficit of Ps.2.3 billion to a surplus of Ps.0.5 billion.

Social security revenues. In 2004, social security revenues increased 27.9% to Ps.13.6 billion, as compared to Ps.10.6 billion in 2003, primarily as a result of the general improvement in the economy, which fostered an increase in salaries and the number of formal registered employees. In 2005, social security revenues increased 28.0% to Ps.17.4 billion, as compared to Ps.13.6 billion in 2004, primarily as a result of the increase in salaries and the number of formal registered employees. In 2006, social security revenues increased 42.2%, to Ps.24.7 billion, as compared to 2005, primarily as a result of the continued economic recovery and a reduction in tax evasion. In 2007, social security contributions increased by 47.9% to Ps.36.6 billion, as compared to 2006. In 2008, social security contributions increased 43.6%, to Ps.52.6 billion, as compared to 2007, primarily as a result of an increase in wages, transfer of contributors from the private system to the public pension system (the Argentine Integrated Pension System) and changes in the taxable base. In 2009, social security revenues increased 44.1% as compared to 2008, primarily as a result of the transfer of contributors from the private system to the public pension system (the Argentine Integrated Pension System).

Social security expenditures. In 2004, social security expenditures increased 16.0% to Ps.26.1 billion, primarily as a result of the increase in the minimum basic pension, a one-time payment and other additional amounts paid to beneficiaries in order to adjust the purchase power of the pensions. In 2005, social security expenditures increased 17.1% to Ps.30.6 billion, primarily as a result the increase in pensions and the additional amounts paid to beneficiaries of 65 years of age or older receiving pensions of Ps.600 per month or less. In 2006, social security expenditures increased 25.1%, to Ps.38.2 billion, primarily as a result of the increase in the minimum basic pension, and an adjustment of 11% in all pensions in order to adjust for purchasing power. In 2007, social security expenditures increased 48.0% to Ps.56.6 billion, mainly as a result of the influx of 1.4 million new beneficiaries into the public pension system, and successive raises in pension incomes. In 2008, social security expenditures increased 30.9% to Ps.74.0 billion as a result of successive raises in pension payments to retirees. Law No. 26,147 was enacted in October 2008 to address the mobility of public social security regimes. This law guarantees a minimum pension, which is adjusted on a six-month basis according to changes in both the wage index published by INDEC and tax revenues.

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PUBLIC SECTOR DEBT

Overview

Argentina’s total gross public debt consists of foreign currency-denominated and peso-denominated debt owed directly by the Government and indirect debt consisting of Government guarantees of obligations of other national public institutions, the provinces (including the city of Buenos Aires) and private sector entities. It does not include direct debt of the provinces or other entities that is not guaranteed by the Government. Except where indicated, foreign currency-denominated debt and peso-denominated debt includes performing and non-performing debt but does not include Untendered Debt.

Except where indicated, debt amounts do not include defaulted debt in respect of securities that were eligible for, but were not tendered in, the 2005 Debt Exchange, or “Untendered Debt,” which totaled U.S.$29.0 billion as of December 31, 2008. As of September 30, 2009, Untendered Debt totaled U.S.$30.0 billion and consisted of:

U.S.$15.1 billion of past due principal amounts;

U.S.$9.6 billion of past due interest amounts; and

U.S.$5.3 billion of principal that had not become due.

Past due interest amounts relating to non-performing debt provided in this annual report do not include penalty interest. Argentina does not maintain or publish statistics on penalty interest in connection with its public debt. As of September 30, 2009, Argentina estimates the amount of penalty interest to be of approximately U.S.$2.2 billion on its non-performing debt and U.S.$103.1 million on Untendered Debt. No statistics are available to estimate the amount of penalty interest on approximately 6.0% of Argentina’s non-performing debt, which represents debt owed to suppliers and commercial banks.

As of December 31, 2008, Argentina’s total gross public debt was U.S.$146.0 billion (48.8% of nominal GDP). Argentine residents held approximately 61.8% (U.S.$90.2 billion) of Argentina’s total gross public debt and foreign creditors held 38.2% (U.S.$55.7 billion). Peso-denominated debt totaled Ps.239.3 billion (U.S.$69.3 billion), representing 47.5% of Argentina’s total gross public debt, of which 36.6% corresponded to CER-index linked debt. Foreign currency-denominated debt totaled U.S.$76.7 billion, representing 52.5% of Argentina’s total gross public debt.

As of December 31, 2008, total gross public debt (including defaulted debt other than Untendered Debt) by type of instrument was the following:

65.7%, or U.S.$95.9 billion, in bonds (including provincial bonds guaranteed by the Government (Bogar));

14.6%, or U.S.$21.3 billion, in loans from multilateral and bilateral lenders;

9.6%, or U.S.$14.0 billion, in short-term debt in the form of temporary advances from the Central Bank, Treasury notes and promissory notes;

8.2%, or U.S.$12.0 billion, in National Guaranteed Loans (prior to the exchanges of National Guaranteed Loans that occurred in 2009. See “¾Debt Management Following the 2001 Debt Crisis¾Other Restructurings and Liability Management Transactions”); and

1.9%, or U.S.$2.8 billion, in loans from commercial banks and suppliers.

As of September 30, 2009, Argentina’s total gross public debt was U.S.$141.7 billion (49.1% of nominal GDP). Argentine residents held approximately 61.3% (U.S.$86.8 billion) of Argentina’s total gross public debt and foreign creditors held 38.7% (U.S.$54.8 billion). Peso-denominated debt totaled Ps.248.2 billion (U.S.$64.6 billion), representing 45.6% of Argentina’s total gross public debt, of which 27.0% corresponded to CER-index linked debt. Foreign currency-denominated debt totaled U.S.$77.1 billion, representing 54.4% of Argentina’s total gross public debt.

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As of September 30, 2009, total gross public debt (including defaulted debt other than Untendered Debt) by type of instrument was the following:

68.3%, or U.S.$96.8 billion, in bonds (including provincial bonds guaranteed by the Government (Bogar));

15.9%, or U.S.$22.5 billion, in loans from multilateral and bilateral lenders;

8.1%, or U.S.$11.5 billion, in short-term debt in the form of temporary advances from the Central Bank, Treasury notes and promissory notes;

4.4% or U.S.$6.3 billion, in loans from commercial banks and suppliers; and

3.2%, or U.S.$4.6 billion, in National Guaranteed Loans (after the exchanges of National Guaranteed Loans that occurred prior to October 2009. See “¾Debt Management Following the 2001 Debt Crisis¾Other Restructurings and Liability Management Transactions”).

The ratio of total gross public debt to nominal GDP as of December 31, 2008, decreased to 48.8%, as compared to 56.1% as of December 31, 2007, because the overall fiscal surplus reduced financing needs, resulting in a decrease in the incurrence of new debt, while nominal GDP continued to grow.

The ratio of total gross public debt to nominal GDP as of September 30, 2009, increased to 49.1%, as compared to 48.8% as of December 31, 2008, primarily as a result of the higher growth of total gross public debt expressed in pesos (by 8.0%) compared to nominal GDP (7.4%).

As of December 31, 2008, non-performing debt was U.S.$6.9 billion, out of which U.S.$0.6 billion, or 0.4% of total gross public debt, represented non-performing debt not yet due and U.S.$6.3 billion, or 4.3% of total gross public debt, corresponded to arrears.

As of September 30, 2009, non-performing debt was U.S.$6.9 billion, of which U.S.$0.5 billion, or 0.4% of total gross public debt, represented non-performing debt not yet due and U.S.$6.4 billion, or 4.5% of total gross public debt, corresponded to arrears.

In September 2008, President Fernández de Kirchner announced Argentina’s intention to pay its bilateral debt pertaining to country members of the Paris Club. Argentina is evaluating alternatives to implement this decision.

On October 23, 2009, Minister of Economy Amado Boudou announced that Argentina would proceed with plans for the restructuring of its Untendered Debt. On November 18, 2009, Congress approved a bill to suspend Argentine Law No. 26,017, which provided certain restrictions to a new restructuring and other transactions with holdout creditors. On December 9, 2009, President Fernández de Kirchner signed a decree authorizing the Ministry of Economy and Public Finance to file a shelf registration statement for Argentina for an amount of up to U.S.$15.0 billion.

On December 14, 2009, the Executive Power issued an emergency decree creating the Bicentennial Fund in the amount of approximately U.S.$ 6.6 billion, with moneys to be borrowed from the Central Bank. In consideration, the Central Bank would receive a 10-year Treasury Note. Emergency decrees have equal validity to Congressional laws unless rejected by both Chambers of Congress.

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The purpose of the Bicentennial Fund is to provide for debt payments by the Government to private investors and multilateral agencies during 2010. The fund, along with its prospective debt exchange offer, forms part of Argentina’s efforts to normalize its financial situation. In addition, this measure reflects Argentina’s objectives, in line with policies implemented by it and the Central Bank, as well as other emerging and developed economies including China, Russia and Japan, of maintaining sufficient reserves to cushion against external shocks and to permit the sound administration of monetary policy while at the same time allowing reserves to be used for ends that foster economic stability, growth and confidence by external investors and creditors.

The Governor of the Central Bank, in violation of the emergency decree, did not comply with the terms for creating the Bicentennial Fund. Thus, the Executive Power issued an emergency decree removing him from office. Opposition members of Congress filed a summary proceeding in a local federal court requesting a restraining order to suspend the effects of the creation of the Bicentennial Fund. The Governor of the Central Bank also initiated similar proceedings in the same court to prevent his removal from office.

On January 8, 2010, the federal court issued injunctions staying the effects of both the decree that created the Bicentennial Fund and the decree removing the Central Bank Governor. The Executive Power appealed both decisions.

Beginning on January 11, 2010, at the request of certain holders of defaulted debt, a federal judge for the United States District Court for the Southern District of New York (referred to as the District Court), attached and restrained reserves held by the Central Bank in New York, including an account of the Central Bank at the Federal Reserve Bank of New York ("FRBNY"). On January 15, 2010, the District Court clarified that, as to the Central Bank account at the FRBNY, the orders issued were void to the extent that they reached more than the approximately $100 million previously attached and restrained by plaintiffs as of December 30, 2005. The District Court further clarified that, consistent with its previous orders, the Central Bank could continue to operate the FRBNY account. For additional information on U.S. litigation involving the Central Bank, see “Public Sector Debt—Legal Proceedings—Litigation in the United States—Attempts to attach Argentine property in U.S. Litigation.”

On January 22, 2010, an Argentine federal court of appeals issued an order confirming the injunction staying the effects of the decree that created the Bicentennial Fund. The court of appeals deferred to both the Executive Power and to the ongoing proceedings of the Congressional bicameral commission initiated by the Executive Power in relation to the removal of the Governor of the Central Bank. The Vice Governor of the Central Bank is the acting Governor pursuant to Article 13 of the charter of the Central Bank which sets forth that the Vice Governor assumes the functions of the Governor in the event of absence, impediment or vacancy in the Governor’s posts.

Debt Record

On December 24, 2001, the Government (under the temporary administration of President Rodriguez Saá) declared a moratorium on a substantial portion of Argentina’s public debt. President Duhalde, his successor, endorsed the moratorium when he took office several days later. The Public Emergency Law, enacted on January 6, 2002 (which has been extended until December 31, 2011), authorized the Government to take the measures necessary to create conditions for an economic recovery and to restructure Argentina’s public debt.

On February 6, 2002, the Government issued Decree No. 256, which officially suspended payments on Argentina’s public debt and authorized the Ministry of Economy to undertake a restructuring of these obligations. Subsequently, the Government issued Resolution No. 73 (April 2002), Resolution No. 350 (September 2002), Resolution No. 449 (October 2002) and Resolution No. 158 (March 2003), pursuant to which it refined the scope of the suspension of debt payments. In accordance with these decrees, the Government continued to meet its debt obligations to the following creditors:

multilateral official lenders;

creditors that agreed to the pesification of their National Guaranteed Loans;

holders of new bonds (such as Boden) issued since the Government announced the suspension of debt payments; and

certain other categories of public debt.

On December 9, 2004, President Néstor Kirchner signed two decrees officially authorizing the debt exchange offer to restructure a significant portion of Argentina’s defaulted bond debt. On January 14, 2005, Argentina launched an offer to exchange its defaulted securities for new Par, Quasi-Par and Discount Bonds, and GDP-linked Securities. The exchange offer closed on February 25, 2005, with a 76.2% acceptance rate. The offer was settled on June 2, 2005. For further discussion of the 2005 Debt Exchange, see “—Debt Management Following the 2001 Debt Crisis—2005 Debt Exchange.”

As part of the Government’s plans to proceed with a new restructuring, as announced by Minister Amado Boudou on October 23, 2009, Congress approved on November 18, 2009, a bill to suspend Argentine Law No. 26,017, which provided certain restrictions to a new restructuring and other transactions with holdout creditors.

Paris Club. Argentina restructured debt due to members of the Paris Club, a group of sovereign creditors, in five separate agreements in 1985, 1987, 1989, 1991 and 1992. Under most of these agreements, new maturities averaged 10 years, with average grace periods of approximately 5½ years. The amounts rescheduled under these agreements totaled U.S.$9.0 billion. The Government defaulted on debt owed to country members of the Paris Club during the debt crisis that began in 2001. In September 2008, President Fernández de Kirchner announced Argentina’s intention to pay its bilateral debt pertaining to member countries of the Paris Club. Argentina is evaluating alternatives to implement this decision. For further discussion of debt owed to Paris Club lenders, see “—Debt Owed to Official Institutions.”

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Prior Debt Restructurings

Commercial Banks. In 1985 and 1987, Argentina negotiated the restructuring of U.S.$34.7 billion in debt owed to international commercial bank creditors. In addition to the banks extending new loans in the aggregate amount of approximately U.S.$3.0 billion, two bond issuances formed part of this restructuring: “new money bonds” and “alternative participation instruments,” or “APIs.” Interest payments to bank creditors were suspended in April 1988 and resumed on a partial basis until the refinancing of medium- and long-term commercial bank debt under the Brady Plan (as described below).

The Brady Plan. In April 1992, Argentina announced a refinancing agreement under the Brady Plan relating to medium- and long-term debt owed to commercial banks. The Brady Plan applied to an estimated U.S.$28.5 billion in debt, including an estimated U.S.$9.3 billion in interest arrears, representing over 96% of the commercial bank debt then outstanding. The Brady Plan effected a reduction of approximately U.S.$3 billion in the nominal amount of Argentina’s foreign debt, as well as a nominal debt reduction of 35%.

Over 96.0% of the commercial bank debt was refinanced pursuant to the Brady Plan. The Brady Plan provided for the issuance of par bonds, discount bonds and floating rate bonds, or “FRBs,” and a cash payout of U.S.$700 million in exchange for previously outstanding commercial bank debt of U.S.$28.5 billion, which included U.S.$9.2 billion of interest in arrears.

The terms of the Brady Bonds were as follows. The par bonds:

were issued in an aggregate principal amount of U.S.$12.5 billion and DM284 million,

had a 30-year maturity, and

bore interest at fixed rates rising from 4% to 6% in the seventh year, in the case of the U.S. dollar denominated par bonds, and at a constant fixed rate of 5.87% for par bonds denominated in Deutsche Marks.

The discount bonds:

were issued in an aggregate principal amount of U.S.$4.1 billion and DM282 million,

had a 30-year maturity, and

bore interest at the rate of LIBOR for the relevant currency plus 0.813%.

The payment of the principal amount on the par bonds and the discount bonds at maturity was secured with U.S. Treasury and Kreditanstalt für Wiederaufbau Zero Coupon obligations. Interest payments for both the par bonds and the discount bonds denominated in U.S. dollars were collateralized up to an amount equivalent to 12 months’ interest. Interest payments for the Deutsche Mark par and discount bonds were collateralized up to an amount equivalent to less than 12 months’ interest.

The floating rate bonds (FRB):

were issued in an aggregate principal amount of U.S.$8.5 billion,

had a 12-year maturity (amortizing), and

bore interest at the rate of LIBOR for the relevant currency plus 0.813%

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Argentina serviced the Brady Bonds until its default in 2001. Approximately 95.7% of the U.S. dollar-denominated Brady Bonds and 81.3% of the euro-denominated Brady Bonds were exchanged in the 2005 Debt Exchange.

As of September 30, 2009:

U.S.$351 million of par Brady Bonds that had not been tendered in the 2005 Debt Exchange remained outstanding, of which U.S.$98.1 million corresponded to past due interest;

U.S.$109 million of discount Brady Bonds that had not been tendered in the 2005 Debt Exchange remained outstanding, of which U.S.$20.0 million corresponded to past due interest; and

U.S.$113 million of FRBs that had not been tendered in the 2005 Debt Exchange remained outstanding, of which U.S.$107 million corresponded to past due principal.

Principal payments and a portion of interest payments on the par and discount Brady Bonds are secured by collateral. For a description of these security arrangements, see “—Debt Management Following the 2001 Debt Crisis—Secured or Guaranteed Debt.”

Debt Management Following the 2001 Debt Crisis

Following the suspension of payments on debt in late 2001, the Government began to issue Boden, primarily for the purpose of compensating individuals and foreign and domestic financial institutions affected by various crisis measures adopted by the Government. The following is a brief description of certain of the various types of Boden:

Boden Depositor. The Government has issued these bonds since 2002 to compensate depositors for losses they incurred as a result of the pesification and the rescheduling of bank deposits. The corresponding banks have incurred an obligation to reimburse the Government for the nominal principal amount of these bonds at a specified discount. As of December 31, 2008, there was a total of U.S.$3.2 billion of these bonds outstanding, all of which were denominated in U.S. dollars.

Boden Compensation and Boden Coverage. Since 2002, the Government has issued these bonds to banks to compensate them for losses they incurred as a result of the asymmetric pesification of substantially all foreign currency-denominated loans and liabilities. As of December 31, 2008, there was a total of: U.S.$2.3 billion of Boden Compensation bonds outstanding, all of which were denominated in U.S. dollars; U.S.$1.8 billion of Boden Coverage bonds outstanding, all of which were denominated in U.S. dollars; and unsubscribed Boden Compensation and Boden Coverage bonds in the amount of U.S.$35.5 million.

Boden Restitution. The Government issued these bonds in 2003 to compensate pensioners and public-sector employees for the 13% reductions in benefits and salaries that took place in 2001. These bonds are CER-index linked. As of December 31, 2008, there was a total of U.S.$1.3 million of these bonds outstanding, all of which were denominated in pesos.

Boden Quasi-Currency. The Government issued these bonds in 2003 to the Central Bank as part of the process of redeeming substantially all of its own quasi-currency bonds (Lecops) and substantially all of the quasi-currency bonds issued by the provinces (bonds issued by the province of Buenos Aires are known as Patacones). These bonds are CER-index linked. As of December 31, 2008, there was a total of U.S.$1.0 billion of these bonds outstanding, all of which were denominated in pesos.

Boden Asymmetrical Indexation CER-CVS. The Government has issued these bonds since 2005 to compensate banks for the asymmetrical indexation that occurred when banks held assets indexed to CER (the CPI-linked index) and held liabilities indexed to CVS (the salary-linked index). These bonds are not CER-index linked. As of December 31, 2008, there was a total of U.S.$16.5 million of these bonds outstanding, all of which were denominated in pesos.

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The outstanding amount of Boden (including the ones described above) was:

U.S.$17.81 billion in 2004;

U.S.$21.12 billion in 2005;

U.S.$21.31 billion in 2006;

U.S.$20.20 billion in 2007;

U.S.$19.85 billion in 2008; and

U.S.$14.32 billion as of September 30, 2009.

After the suspension of debt payments in December 2001, the Government continued issuing Bocones. These bonds, which the Government has issued since 1991, are used primarily to restructure obligations that the Government owes to pensioners and various private creditors. In August 1997, the Government also authorized the issuance of a series of Bocones as reparation to the families of those who were imprisoned by, or who disappeared under the rule of, the military dictatorship from 1976 through 1983. The outstanding amount of such Bocones was:

U.S.$2.49 billion in 2004;

U.S.$2.52 billion in 2005;

U.S.$3.43 billion in 2006;

U.S.$4.07 billion in 2007;

U.S.$3.95 billion in 2008; and

U.S.$2.07 billion as of September 30, 2009.

2005 Debt Exchange

On January 14, 2005, Argentina launched a global voluntary offer to exchange 152 different series of securities on which it had defaulted in 2001 for new Par, Quasi-Par and Discount Bonds, and GDP-linked Securities. The aggregate value of securities that were eligible to participate in the exchange (including nominal value of the eligible securities and accrued past due interest accumulated as of December 2001) was approximately U.S.$81.8 billion. Accrued past due interest accumulated from December 31, 2001, to December 31, 2003, was not eligible to participate in the exchange, which would have increased the amount on this debt segment to at least U.S.$102.6 billion. The aggregate value of securities tendered in the 2005 Debt Exchange was approximately U.S.$62.3 billion, representing 76.15% of the aggregate value of eligible securities.

Depending on the security tendered and the time of tender, holders of eligible securities who participated in the offer were entitled to receive, in exchange for their securities, different combinations of the following:

Par Bonds due December 31, 2038 (the “2038 Par Bonds”);

Discount Bonds due December 31, 2033 (the “2033 Discount Bonds”);

Quasi-Par Bonds due December 31, 2045 (the “2045 Quasi-Par Bonds”); and

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A notional amount of GDP-linked Securities expiring no later than December 15, 2035 (the “2035 GDP-Linked Securities”).

Participants in the 2005 Debt Exchange have the right to participate in any future offer by Argentina to repurchase, exchange or amend any of the Untendered Debt.

Mandatory repurchase clauses require Argentina to allocate defined amounts to the repurchase of new bonds and other indebtedness. In addition, Argentina is required to repurchase bonds issued in the 2005 Debt Exchange if Argentina’s GDP exceeds a pre-established threshold. Further details about the repurchase provisions may be found in the supplement to the prospectus dated December 27, 2004, for the 2005 Debt Exchange filed with the SEC on January 10, 2005.

The terms of the securities issued in the 2005 Debt Exchange were as follows.

The 2038 Par Bonds:

were issued in an aggregate principal amount of U.S.$15.0 billion,

have a 33-year maturity, and

bear interest at fixed rates rising from 1.33% to 5.25% (for 2038 Par Bonds denominated in U.S. dollars), from 1.20% to 4.74% (for 2038 Par Bonds denominated in euros), and from 0.63% to 2.48% (for 2038 Par Bonds denominated in Pesos).

The 2033 Discount Bonds:

were issued in an aggregate principal amount of U.S.$11.9 billion,

have a 28-year maturity, and

bear interest at a fixed rate of 8.25% (for 2033 Discount Bonds denominated in U.S. dollars), 7.82% (for 2033 Discount Bonds denominated in euros) and 5.83% (for 2033 Discount Bonds denominated in pesos).

The 2045 Quasi-Par Bonds:

were issued in an aggregate principal amount of Ps.24.3 billion (approximately U.S.$8.3 billion),

have a 40-year maturity, and

bear interest at a fixed rate of 3.31%.

The 2035 GDP-Linked Securities:

were issued in a notional amount of approximately U.S.$62.3 billion,

were issued originally as a single unit with the underlying 2038 Par Bonds, 2033 Discount Bonds and 2045 Quasi-Par Bonds,

expire no later than December 15, 2035, and

provide for payments in respect of any given reference year only if a number of conditions are met relating to the performance of Argentina’s GDP in such year; the total amount to be paid during the life of the 2035 GDP-Linked Securities, per unit of 2035 GDP-Linked Security, cannot exceed 0.48, measured per unit of currency.

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The outstanding principal amount of all 2038 Par Bonds, 2033 Discount Bonds and 2045 Quasi-Par Bonds denominated in pesos is adjusted for inflation based on the Coeficiente de Estabilización de Referencia, or “CER,” a unit of account whose value in pesos is indexed to consumer price inflation in Argentina, as measured by changes in the consumer price index, or “CPI.”

Brady bondholders tendered Brady Bonds for an aggregate principal amount of approximately U.S.$2.8 billion and €235.4 million and received their present value in cash from the redemption of the Brady Bonds’ principal collateral.

The 2005 Debt Exchange settled on June 2, 2005.

The calculation of the net present value reduction that tendering holders accepted in the 2005 Debt Exchange is subjective and may vary over time depending on elements such as the performance of interest rates and other factors. Argentina does not maintain any statistics ascertaining the precise value of the debt reduction to bondholders. Nevertheless, private analysts at the time estimated that the debt reduction was of approximately 65% to 75% of the original value of the 2005 Eligible Securities.

Other Restructurings and Liability Management Transactions

On August 31, 2006, Argentina restructured debt that it held with Banco de la Nación Argentina. This debt was restructured through the issuance of a Bonos-Pagaré denominated in pesos in the amount of Ps.1.5 billion.

On January 31, 2007, Argentina and Spain restructured a U.S.$982 million bilateral loan that was made under the IMF program during the 2001 financial crisis. Argentina agreed to repay Spain within six years of this restructuring, at a rate of LIBOR plus 140 basis points.

Liability Management Transactions during 2009. Liability management was a key aspect of Argentina’s financial strategy during 2009. The liability management transactions that took place during this period reduced the total amount of Argentina’s indebtedness by approximately Ps.2.4 billion, and reduced Argentina’s debt service by Ps.6.7 billion for 2009 and by a total of Ps.23.8 billion for the four-year period ending in 2012. It also changed Argentina’s debt composition. While the proportion of foreign currency-denominated debt remained the same, the share of CER-index linked debt decreased from 37.0% of Argentina’s total debt as of December 31, 2008, to 27.0% as of September 30, 2009. The main goals of these liability management transactions were:

to improve Argentina’s debt service profile for the 2009-2012 period by extending maturities and changing its floating interest rate exposure from risk associated with the CER index to the BADLAR rate;

to develop a BADLAR-rate linked yield curve, which would give public and private sector issuers a benchmark for pricing; and

to offer financial institutions an instrument that would allow them to hedge against their BADLAR-rate linked liabilities.

Following is a description of liability management transactions in 2009:

January Offer. On January 23, 2009, Argentina launched an offer to exchange four series of National Guaranteed Loans with maturities up to 2011, for peso-denominated bonds and promissory notes governed by Argentine law and maturing in 2014. The Bonar Pesos 2014 and the Promissory Notes Pesos 2014 offered in the exchange bear interest at an annual rate of 15.4% during the first year after issuance and at an annual floating rate equal to the BADLAR rate plus 275 basis points thereafter.

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The exchange offer was structured in two phases. The first phase of the offer was open to domestic local institutional investors, primarily banks, insurance companies and ANSES and the second phase was open to both domestic local institutional investors and international investors. Holders in both phases tendered a total amount of Ps.17.5 billion of their National Guaranteed Loans, receiving a total of Ps.12.3 billion of Bonar Pesos 2014 and a total of Ps.4.9 billion of Promissory Notes Pesos 2014 in exchange.

August Offer. On August 27, 2009, Argentina launched an offer to exchange two series of Bocones with maturities up to 2016 and two series of National Guaranteed Loans with maturities up to 2011, for Bonar Pesos 2014 and Promissory Notes Pesos 2014. The exchange was open to all holders of the eligible securities. Holders tendered a total amount of Ps.4.6 billion of their Bocones and a total amount of Ps.470 million of their National Guaranteed Loans, receiving a total of Ps.3.8 billion of Bonar Pesos 2014 and a total of Ps.564 million of Promissory Notes Pesos 2014.

September Offer. On September 2, 2009, Argentina launched an offer to exchange five series of National Guaranteed Loans with maturities up to 2012 and Boden 2014 maturing in 2014, for peso-denominated bonds and promissory notes governed by Argentine law and maturing in 2015. The Bonar Pesos 2015 and the Promissory Notes Pesos 2015 offered in the exchange bear interest at an annual floating rate equal to the BADLAR rate plus 300 basis points, with an amount equal to the BADLAR rate to be capitalized during the first two years and paying 300 basis points interest rate during such period, and paying the full floating interest rate thereafter. The exchange was open to all holders of the eligible securities. Holders tendered a total amount of Ps.9.9 billion of their Boden 2014 and a total amount of Ps.2.1 billion of their National Guaranteed Loans, receiving a total of Ps.9.0 billion of Bonar Pesos 2015 and a total of Ps.1.9 billion of Promissory Notes Pesos 2015.

Description of the Debt Restructuring Process and Determination of Terms of Exchange Offers

Argentina’s efforts to restructure its debt following its default in 2001 may be divided into two principal phases:

the stage accompanying the 2005 Debt Exchange (the “2005 Offer Stage”); and

the stage accompanying the prospective exchange offer in 2010 (the “2010 Offer Stage”)

In arriving at the terms of the exchange offers at each stage, Argentina has needed to weigh important considerations, including:

debt sustainability;

social and economic considerations affecting Argentina and its citizens;

the feedback obtained from consultation with market participants including creditors, creditor groups, investment banks and finance organizations;

consultation with other countries and official sector agencies; and

legal limitations and constraints.

The 2005 Offer Stage

In the 2005 Offer Stage, Argentina arrived at the terms of its offer after a lengthy and complicated analytical and consultative process. The Government’s resources and debt payment capacity were severely constrained by the need to address the socio-economic problems it confronted domestically, including the rampant poverty and profound social needs of the Argentine citizenry following the worst economic crisis in its history.

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Argentina sought a prudent and sustainable course for its future debt service. In that context, Argentina began discussions about debt restructuring with creditors and other market and official sector participants in 2002.

Argentina’s negotiation process took a form that reflected changing realities of the capital markets. Argentina had hundreds of thousands of creditors with varying interests located throughout the world and over a hundred series of bonds under varying governing laws. Rather than organizing a debt committee, as it and other countries had done when dealing with commercial bank creditors, Argentina met with the various groups that represented different constituencies. Argentina also sought to share information equally among all creditors and in compliance with applicable securities laws of the jurisdictions in which it planned to make an offer. Unlike sovereign debt restructurings involving committees - in which committee members, official sector agencies and multi-lateral organizations endorsed the country’s debt restructuring proposal after reaching an agreement -Argentina’s consultation-based process was, instead, an effort to create a reasonable process for negotiation in the context of complex capital market constituencies around the world with strict restrictions on the use of information. In following this route, Argentina proceeded in similar ways to Uruguay, Pakistan and Ukraine, among others.

Among the groups that Argentina consulted during the 2005 Offer Stage were:

The Argentine Bondholders’ Committee (“ABC”);

Task Force Argentina (“TFA”);

The Argentine Bond Restructuring Agency plc (“ABRA”);

The Global Committee of Argentine Bondholders (“GCAB”), an umbrella organization comprising ABC, TFA, ABRA and other creditor groups, and

many other creditor groups and consumer group representatives in Italy, Germany, Japan and other jurisdictions.

At the same time it consulted with creditors, Argentina maintained a dialogue with governmental, multilateral and other official sector agencies. These included:

Governmental entities of countries with significant bondholders affected by the default, including the U.S. Treasury and Italian and German authorities; and

multilateral entities, such as the IMF.

In order to assist it in consultations and negotiations, Argentina hired financial advisors. These advisors helped organize meetings, identify bondholders and take market soundings to help Argentina begin to define an offer.

In September 2003, Argentina announced indicative terms of an offer during the annual meetings of the IMF and the World Bank in Dubai. After that, Argentina continued discussions with market and official sector representatives. When it was ready to begin to implement an exchange offer, Argentina appointed Merrill Lynch & Co., Barclays Capital and UBS Investment Bank (the “2005 Offer Managing Banks”) in February 2004. The Managing Banks assisted with further consultations and with refinement of the 2005 Debt Exchange.

Argentina encountered vigorous and determined opposition in the process that culminated in its 2005 Debt Exchange. While some creditors negotiated in good faith, others sought to derail the 2005 Debt Exchange altogether even in the face of a large percentage of holders that wanted to enter into the exchange. Certain aggressive creditors and groups tried interrupting or sabotaging participation in the 2005 Debt Exchange through litigation, counter-publicity campaigns, and other means.

Ultimately, Argentina determined the terms of its 2005 Debt Exchange after taking into account in good faith the needs of its various creditor constituencies in the context of its fiscal and other constraints and with the aim of reaching debt sustainability in the medium and long term. The consultation and negotiation process led to terms that took account of special needs and requirements of creditors. Argentina included GDP-linked Securities, which would yield payments based on the amount that GDP exceeded an assumed base rate per annum (and, accordingly, give creditors the up-side of any improvement in Argentina’s economy). Argentina also provided both a Par Option, most attractive to retail creditors, and a Discount Option, most attractive to institutional creditors among other features requested by creditors.

143

Creditors also insisted that Argentina needed to heed their inter-creditor concerns as a condition of their participation in the 2005 Debt Exchange. Argentina received feedback from many creditors, which stated that they would not participate in the 2005 Debt Exchange absent legal reassurance that holdout creditors would not be able to receive more advantageous terms in the future. This led to the inclusion of a clause in the terms of the securities issued in the 2005 Debt Exchange which gave tendering bondholders certain rights upon future offers (the “RUFO Clause”). After the 2005 Debt Exchange was launched, certain creditors expressed strong concern that the RUFO Clause did not provide sufficient protection to tendering bondholders that Argentina might, at a later date, strike a more favorable deal with holdout creditors. In an effort to reassure tendering bondholders and increase the level of participation in the 2005 Debt Exchange, Congress subsequently passed Law No. 26,017, known as the “Lock Law”. The Lock Law prohibited the Executive Branch from reopening the 2005 Debt Exchange without Congressional approval and also prohibited any type of settlement involving untendered securities that were eligible to participate in the 2005 Debt Exchange (the “2005 Eligible Securities”).

Even after the 2005 Debt Exchange was accepted by 76.15% in interest of holders of 2005 Eligible Securities, two of the most aggressive holdout creditors managed to interrupt settlement for approximately two months until Argentina was able to lift orders they had obtained which would have frustrated the purpose of debt reduction of the 2005 Debt Exchange. The 2005 Debt Exchange was settled on June 2, 2005, and although holders of 2005 Eligible Securities in the aggregate amount of approximately U.S.$ 19.5 billion at the time of the 2005 Debt Exchange did not accept the 2005 Debt Exchange, the remainder obtained new securities, which Argentina has serviced ever since.

The 2010 Offer Stage

In 2008, Argentina began to reserve and to consider proposals outlining the terms of a new potential offer to its creditors. The Government decided in 2008 to proceed to negotiate a new offer with its creditors, but was delayed by the global financial crisis. Finally, in 2009, Argentina engaged Barclays Capital, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. to assist it in carrying out a new offer and formally to begin the 2010 Offer Stage.

In addition to the usual elements it has to consider and weigh as part of arriving at a final offer, Argentina also had two principal legal constraints:

the Lock Law; and

the RUFO Clause.

In December 2009, Congress passed Law 26,547, which suspends the application of the Lock Law and also precludes Argentina from making a better offer to creditors than its 2005 Debt Exchange. If Argentina had been able to make a better offer to creditors than its 2005 Debt Exchange, the application of the RUFO Clause would have created an incentive for creditors that participated in the 2005 Debt Exchange to participate in the new offer.

Argentina has undertaken investor consultations as part of the process necessary to arrive at the terms of its final offer and, as was the case in the 2005 Debt Exchange, it is willing to take into account in good faith the needs of its various creditor constituencies in the context of its fiscal and other constraints and with the aim of consolidating debt sustainability in the medium and long term.

144

Indirect Debt

The Government guarantees—in part or in full—principal and interest payments on certain debt obligations of the provinces and other national and private entities. A portion of these Government guarantees is secured by assets or tax receivables of the Government.

As of September 30, 2009, the Government guaranteed third-party obligations for an aggregate amount of U.S.$14.1 billion (including past due principal and interest) as compared to U.S.$14.4 billion as of December 31, 2008, consisting of the following obligations:

U.S.$12.4 billion (U.S.$12.6 billion as of December 31, 2008) in debt owed by national entities separate from the Government (such as Banco de la Nación Argentina). Non-financial public institutions owed a substantial portion of this debt, and assets of the direct obligor secured 92.4% of this amount (99.0% as of December 31, 2008). This debt includes U.S.$9.9 billion (U.S.$11.0 billion as of December 31, 2008) of indebtedness held by Fondo Fiduciario para el Desarrollo Provincial (Fiduciary Fund for Provincial Development), or “FFDP,” which originated with the issuance of the Bogar;

Bogar 2018 issued in 2002 by the Fondo Provincial para el Desarrollo (Provincial Development Fund) in an aggregate principal amount equal to U.S.$9.3 billion to restructure the debts of a number of provinces. Their repayment is guaranteed by the Government and thus constitutes indirect debt of the Government;

Bogar 2020 issued during 2005 and 2006 by the FFDP in an aggregate principal amount equal to U.S.$583 million (U.S.$646 million as of December 31, 2008) in order to restructure the debt it held with specific entities from the financial system (principally banks). Bogar 2020 is denominated in pesos, CER-index linked and pays an annual fixed interest rate of 2%. Similar to the Bogar 2018, the repayment of principal and interest of Bogar 2020 is guaranteed by the Government and constitutes indirect debt of the Government;

U.S.$1.4 billion (U.S.$1.5 billion as of December 31, 2008) in provincial debt (including the city of Buenos Aires), all of which was secured by assets of the issuer; and

U.S.$328 million (U.S.$336 million as of December 31, 2008) in debt of private sector entities; none of these debts were secured by assets of the issuer.

For a description of the arrangement between the Government and the provinces with respect to these bonds see “Public Sector Finances—Fiscal Relations with the Provinces—Other Arrangements with the Provinces.”

Secured or Guaranteed Debt

Certain of the Government’s debt obligations are secured by pledges of specific assets, including tax receivables and other forms of collateral. A description of these security arrangements follows:

National Guaranteed Loans. These loans are secured by a pledge of the Government’s share of the revenue derived from the tax on financial transactions and co-participation taxes (i.e., taxes the Government is required to share with the provinces under the Co-Participation Law). As of December 31, 2008, the outstanding principal amount of National Guaranteed Loans was U.S.$12.0 billion. Argentina has exchanged a portion of its debt relating to the National Guaranteed Loans for new peso-denominated bonds in 2009. As of September 30, 2009, the outstanding principal amount of National Guaranteed Loans was U.S.$4.6 billion. See “¾Debt Management Following the 2001 Debt Crisis¾Other Restructurings and Liability Management Transactions.”

145

Bogar. These bonds are secured through a pledge of the Government’s share of the revenue derived from the tax on financial transactions and co-participation taxes. As of December 31, 2008, there was U.S.$11.0 billion in outstanding principal amount of Bogars. As of September 30, 2009, this amount was U.S.$9.9 billion.

Brady Bonds. The full principal amount of par and discount Brady Bonds is secured, in the case of U.S. dollar-denominated bonds, by zero-coupon U.S. Treasury notes and, in the case of euro-denominated bonds (which were originally denominated in deutsche marks), by zero-coupon bonds issued by Kreditanstalt für Wiederaufbau (Germany’s development bank). The collateral securing these bonds cannot be drawn upon until the maturity date of these bonds in 2023. As of December 31, 2008, there was U.S.$127 million in outstanding principal amount of Brady Bonds. As of September 30, 2009, this amount was U.S.$135 million. A portion of the interest payable on Brady Bonds is also collateralized:

For discount Brady Bonds denominated in U.S. dollars or euros, interest collateral was set aside in an amount equal to 12 months of interest calculated at a presumed rate of 8.0% of the principal amount of the outstanding bonds.

For U.S. dollar-denominated par Brady Bonds, interest collateral was set aside in an amount equal to 12 months of interest calculated at a presumed rate of 6.0% of the principal amount of the outstanding bonds.

For euro-denominated par Brady Bonds, interest collateral was set aside in an amount equal to 12 months of interest calculated at a presumed rate of 5.87% of the principal amount of the outstanding bonds.

Since July 2002, the fiscal agent of the par and discount Brady Bonds has made interest payments on these bonds as they became due by liquidating and drawing upon the collateral set aside to secure these payments.

As of September 30, 2009, the collateral was valued as follows:

U.S.$5.3 million interest payments on the U.S. dollar-denominated discount bonds; no collateral remained for interest payments on the U.S. dollar-denominated par bonds;

U.S.$98.0 million principal payments on U.S. dollar-denominated par and discount bonds;

U.S.$0.1 million interest payments on the euro-denominated discount bonds; no collateral remained for interest payments on the euro-denominated par bonds; and

U.S.$31.3 million principal payments on the euro-denominated par and discount bonds.

Spanish Bonds. In 1993, as part of the Brady restructuring, the Government issued to Spanish banks un-collateralized bonds maturing in 2008 (instead of 30-year Brady bonds). These bonds are guaranteed by the Spanish government, which performed under its guarantee following the Government’s suspension of debt payments in 2001. As of September 30, 2009, Argentina had accumulated U.S.$14.1 million in past due interest payments and U.S.$54.7 million in past due principal payments on these bonds. The bonds matured on March 31, 2008. Principal and interest payments remain suspended.

Tax-Set-off Mechanisms

In the past, the Government has given holders of certain bonds the option to receive a tax credit in lieu of coupon payments. This tax credit could be used to discharge tax obligations the bondholder owes to the Government. For certain types of bonds, the tax set-off option was available only in the event of coupon payment default by the Government.

146

Several different types of Government bonds have had this tax set-off feature (either by law or by the terms of the bonds), the specific mechanics of which vary. This tax set-off mechanism has been a feature of the Bocones since they were first issued in 1991.

In April 2004, this tax set-off arrangement was suspended for all of Government medium-term notes and all Government bonds (with certain exceptions for Bocones and certain Boden).

Evolution of Public Debt

From 2004 through September 30, 2009, Argentina’s total gross public debt decreased 25.9% from U.S.$191.3 billion as of December 31, 2004 to U.S.$141.7 billion as of September 30, 2009, mainly as a result of the 2005 Debt Exchange. After the 2005 Debt Exchange, total debt as a percentage of nominal GDP decreased gradually from 73.9% as of December 31, 2005 to 49.1% as of September 30, 2009. From 2004 to 2008, Argentina had limited access to international capital markets and most of the new debt incurred in this period represented domestic debt issued in pesos and U.S. dollars. After the 2005 Debt Exchange, the breakdown of peso-denominated and foreign currency-denominated debt remained relatively stable (approximately half each from 2005 through September 30, 2009). Except where indicated, debt amounts do not include Untendered Debt, which totaled approximately U.S.$29.0 billion as of December 31, 2008. As of September 30, 2009, Untendered Debt totaled approximately U.S.$30.0 billion.

147

The following table sets forth information on Argentina’s total gross public debt as of the dates indicated. This table includes, as a memorandum item, the amount of Untendered Debt, which totaled approximately U.S.$29.0 billion as of December 31, 2008. As of September 30, 2009, Untendered Debt totaled approximately U.S.$30.0 billion.

Total Gross Public Debt(1)

(in millions of U.S. dollars)

	As of December 31,															As of September 30,
	2004			2005			2006			2007			2008			2009
Peso-denominated Debt:(2)
Performing	U.S.$	36,202		U.S.$	61,634		U.S.$	64,844		U.S.$	68,000		U.S.$	68,984		U.S.$	64,327
Non-performing debt not yet due(3)		3,256			1,039			487			166			141			127
Non-performing principal arrears		6,876			125			197			185			172			115
Non-performing interest arrears		337			17			21			24			21			20
Total peso-denominated debt		46,671			62,816			65,549			68,375			69,318			64,588
As a % of total gross public debt		24.4	%		48.6	%		47.9	%		47.2	%		47.5	%		45.6	%

Foreign currency-denominated debt:(4)
Performing		44,696			59,771			63,926			69,977			70,062			70,406
Non-performing debt not yet due (3)		61,811			2,657			2,092			1,096			449			386
Non-performing principal arrears		23,616			3,215			4,227			4,248			5,064			5,177
Non-performing interest arrears		14,515			767			931			1,033			1,082			1,108
Total foreign currency-denominated debt		144,638			66,410			71,176			76,354			76,657			77,077
As a % of total gross public debt		75.6	%		51.4	%		52.1	%		52.8	%		52.5	%		54.4	%

Total gross public debt (including arrears)(5)(6)	U.S.$	191,309		U.S.$	129,227		U.S.$	136,725		U.S.$	144,729		U.S.$	145,975		U.S.$	141,665

Collateral and other credits		(19,425	)		(17,743	)		(18,195	)		(16,865	)		(15,865	)		(14,127	)

Total public debt less collateral and other credits (including arrears)(5)	U.S.$	171,884		U.S.$	111,484		U.S.$	118,530		U.S.$	127,863		U.S.$	130,110		U.S.$	127,538

Memorandum items:
Total gross public debt (including arrears) as a % of GDP(7)		127.3	%		73.9	%		64.0	%		56.1	%		48.8	%		49.1	%
Total gross public debt (including arrears) as a % of annual Government revenues		532.9	%		297.2	%		265.6	%		206.6	%		161.2	%		154.9	%
Untendered Debt (including arrears)		-			23,556			26,076			28,857			28,984			30,004
Exchange rate(8)		2.98			3.04			3.06			3.15			3.45			3.84
CER(8)		1.54			1.72			1.89			2.05			2.21			2.31

					Principal Amount
LENDER	Interest Rate	Issue Date	Final Maturity	Currencies	Face Value	Outstanding as of September 30, 2009
					Millions of dollars	Millions of dollars
World Bank	(a)	01/07/93	11/15/09	USD	170	10
World Bank	(a)	02/02/93	01/15/10	USD	300	17
World Bank	1.77	03/24/95	03/01/10	USD	300	15
World Bank	(a)	03/24/95	11/15/09	USD	170	4
World Bank	1.77	05/05/95	08/01/10	USD	500	50
World Bank	1.77	05/12/95	02/15/10	USD	15	2
World Bank	(a)	05/12/95	08/15/10	USD	7	1
World Bank	6	05/12/95	01/07/00	USD	2	2
World Bank	(a)	05/12/95	10/15/10	USD	165	19
World Bank	(a)	05/12/95	04/15/10	USD	224	20
World Bank	(a)	10/18/95	05/15/10	USD	210	15
World Bank	(a)	10/18/95	10/15/10	USD	11	4
World Bank	6	10/18/95	02/15/11	USD	166	27
World Bank	(a)	01/19/96	09/15/10	USD	101	4
World Bank	(a)	03/23/96	10/15/10	USD	39	3
World Bank	(a)	04/26/96	07/15/11	USD	25	5
World Bank	(a)	04/26/96	07/15/11	USD	100	20
World Bank	(a)	06/06/96	09/15/10	USD	16	1
World Bank	(a)	07/08/96	11/15/10	USD	116	12
World Bank	(a)	12/17/96	02/15/12	USD	300	75
World Bank	(a)	02/21/97	02/15/11	USD	11	1
World Bank	(a)	04/17/97	04/15/12	USD	20	6
World Bank	(a)	04/17/97	02/15/12	USD	200	47
World Bank	(a)	04/17/97	09/15/11	USD	300	63
World Bank	(a)	04/17/97	10/15/11	USD	20	2
World Bank	(a)	07/07/97	09/15/12	USD	200	60
World Bank	(a)	09/23/97	07/15/12	USD	100	30
World Bank	(a)	09/23/97	06/15/12	USD	15	4
World Bank	(a)	10/12/97	06/15/12	USD	200	60
World Bank	(a)	11/21/97	11/15/12	USD	50	17
World Bank	(a)	11/21/97	11/15/12	USD	75	26
World Bank	(a)	01/20/98	11/15/12	USD	100	35
World Bank	(a)	01/20/98	11/15/12	USD	50	12
World Bank	(a)	01/20/98	03/15/12	USD	125	31
World Bank	(a)	05/06/98	09/15/12	USD	75	22
World Bank	(a)	05/06/98	09/15/12	USD	42	13
World Bank	(a)	10/20/98	05/15/13	USD	4	1
World Bank	(a)	10/20/98	08/15/13	USD	284	113
World Bank	(a)	10/20/98	03/15/13	USD	40	10
World Bank	(a)	01/28/99	04/15/13	USD	18	2
World Bank	(a)	03/29/99	03/15/14	USD	30	12
World Bank	(a)	07/15/99	04/15/14	USD	10	5
World Bank	(a)	08/25/99	10/15/13	USD	90	41
World Bank	(a)	10/26/99	02/15/14	USD	30	11
World Bank	(a)	11/29/99	05/06/14	USD	5	1
World Bank	(a)	03/11/00	08/15/14	USD	53	26
World Bank	(a)	12/09/00	06/15/15	USD	5	3
World Bank	(a)	05/09/01	09/15/16	USD	330	141
World Bank	3.90	05/09/01	08/15/16	USD	400	281
World Bank	(a)	07/15/01	10/15/15	USD	303	141
World Bank	(a)	08/17/01	10/15/15	USD	71	29
World Bank	(a)	11/13/01	10/15/15	USD	5	3
World Bank	(a)	01/29/03	10/15/16	USD	600	520
World Bank	4.07	05/23/03	02/15/18	USD	500	393
World Bank	4.36	10/31/03	10/15/18	USD	750	640
World Bank	(a)	01/11/04	01/01/10	USD	2	0
World Bank	4.11	09/07/04	02/15/19	USD	136	117
World Bank	4.41	04/18/06	04/15/18	USD	150	67
World Bank	4.50	07/14/06	10/15/16	USD	25	4
World Bank	4.42	10/23/06	03/15/20	USD	150	39
World Bank	4.38	11/05/06	03/15/19	USD	350	350
World Bank	(a)	12/20/06	09/15/20	USD	40	4
World Bank	(a)	12/20/06	03/15/20	USD	150	39
World Bank	4.50	05/08/07	10/15/20	USD	110	14
World Bank	4.30	05/09/07	07/01/21	USD	300	68
World Bank	4.15	07/12/07	09/15/21	USD	220	111
World Bank	3.91	08/16/07	01/01/22	USD	37	17
World Bank	4.66	11/26/07	03/15/22	USD	100	24
World Bank	4.36	12/28/07	01/15/22	USD	20	6
World Bank	(a)	05/08/07	05/15/21	USD	70	6
World Bank	4.36	11/26/07	01/01/22	USD	200	32
World Bank	(a)	11/06/08	07/01/22	USD	45	7
World Bank	(a)	02/27/09	03/15/38	USD	60	1
World Bank	(a)	01/13/09	03/15/38	USD	20	2
World Bank	(a)	03/27/09	09/15/38	USD	300	11
World Bank	(a)	08/06/09	04/01/38	USD	150	9
World Bank	(a)	06/10/09	12/18/38	USD	450	271
Total					11,133	4,307

Inter-American Development Bank	0.75	02/21/67	02/21/17	CAD	0	0
Inter-American Development Bank	4	01/20/87	01/20/12	USD	1	0
Inter-American Development Bank	7.55	01/20/87	01/20/12	Various	93	14
Inter-American Development Bank	7.18	03/10/88	03/10/13	Various	97	6
Inter-American Development Bank	4	03/10/88	03/10/13	USD	2	0
Inter-American Development Bank	(b)	12/20/89	06/01/15	Various	4	1
Inter-American Development Bank	4.98	03/22/91	03/22/11	USD	155	6
Inter-American Development Bank	4.98	11/15/91	11/15/11	USD	325	63
Inter-American Development Bank	4.98	04/07/92	04/07/12	USD	30	7
Inter-American Development Bank	4.98	04/07/92	04/07/12	USD	300	68
Inter-American Development Bank	4.98	04/07/92	04/07/12	USD	4	0
Inter-American Development Bank	4	04/07/92	04/07/17	USD	1	0
Inter-American Development Bank	3	04/07/92	04/07/17	USD	11	7
Inter-American Development Bank	4.98	12/29/92	12/29/12	USD	310	94
Inter-American Development Bank	4.98	12/29/92	12/29/12	USD	272	108
Inter-American Development Bank	4.98	07/08/93	07/08/13	USD	5	1
Inter-American Development Bank	4	07/08/93	07/08/13	USD	19	5
Inter-American Development Bank	4	09/22/93	09/21/19	USD	25	13
Inter-American Development Bank	4.98	11/21/93	03/21/14	USD	4	2
Inter-American Development Bank	4.98	03/21/94	03/21/14	USD	74	33
Inter-American Development Bank	4.98	09/15/94	06/12/14	USD	97	51
Inter-American Development Bank	3	09/15/94	06/12/19	USD	15	9
Inter-American Development Bank	4.98	01/11/95	01/11/15	USD	36	23
Inter-American Development Bank	4.98	04/05/95	04/05/15	USD	233	152
Inter-American Development Bank	4.98	06/05/95	06/05/10	USD	750	79
Inter-American Development Bank	4	06/05/95	06/05/20	USD	30	21
Inter-American Development Bank	4.98	06/05/95	06/05/20	Various	180	151
Inter-American Development Bank	4.98	06/28/95	06/28/15	USD	450	175
Inter-American Development Bank	5.54	03/26/96	12/15/18	USD	325	157
Inter-American Development Bank	4.98	10/09/96	10/09/16	USD	25	12
Inter-American Development Bank	5.54	12/19/96	12/19/11	USD	319	80
Inter-American Development Bank	5.54	02/20/97	02/20/22	USD	102	81
Inter-American Development Bank	(b)	03/01/97	03/22/13	Various	32	14
Inter-American Development Bank	5.54	03/16/97	03/16/17	USD	78	14
Inter-American Development Bank	5.54	08/04/97	08/04/17	USD	81	38
Inter-American Development Bank	5.54	08/04/97	08/04/17	USD	287	177
Inter-American Development Bank	5.54	02/05/98	02/05/18	USD	250	129
Inter-American Development Bank	5.54	02/11/98	02/11/18	USD	8	1
Inter-American Development Bank	3	03/16/98	03/16/23	USD	17	12
Inter-American Development Bank	5.54	03/16/98	03/16/23	USD	17	12
Inter-American Development Bank	(b)	03/16/98	03/16/18	USD	176	103
Inter-American Development Bank	5.54	07/22/98	07/22/18	USD	64	44
Inter-American Development Bank	5.54	08/08/98	08/08/23	USD	300	263
Inter-American Development Bank	4	09/12/98	09/06/23	USD	16	7
Inter-American Development Bank	3	09/12/98	12/09/23	USD	16	7
Inter-American Development Bank	5.54	12/21/98	12/15/18	USD	62	41
Inter-American Development Bank	5.54	01/11/99	01/11/19	USD	140	96
Inter-American Development Bank	5.54	01/13/99	01/13/24	USD	6	2
Inter-American Development Bank	4	09/15/99	09/15/19	USD	2	0
Inter-American Development Bank	(b)	09/15/99	09/15/19	USD	238	154
Inter-American Development Bank	5.54	10/18/99	10/18/24	USD	250	117
Inter-American Development Bank	5.54	02/03/00	02/03/20	USD	100	66
Inter-American Development Bank	5.54	03/26/00	03/26/20	USD	5	3
Inter-American Development Bank	5.54	02/27/01	02/27/21	USD	400	307
Inter-American Development Bank	5.54	05/09/01	05/09/21	USD	500	400
Inter-American Development Bank	5.54	06/13/01	06/15/21	USD	500	400
Inter-American Development Bank	5.54	06/25/01	06/15/21	USD	2	1
Inter-American Development Bank	5.54	10/25/01	10/25/21	USD	8	3
Inter-American Development Bank	5.54	10/25/01	10/25/26	USD	43	31
Inter-American Development Bank	5.54	11/20/03	11/20/28	USD	600	561
Inter-American Development Bank	(b)	12/28/04	12/15/24	USD	500	500
Inter-American Development Bank	(b)	05/04/05	05/04/25	USD	5	2
Inter-American Development Bank	(b)	05/04/05	05/04/25	USD	5	1
Inter-American Development Bank	(b)	08/24/05	08/24/25	USD	33	10
Inter-American Development Bank	(b)	08/24/05	08/24/25	USD	18	6
Inter-American Development Bank	(b)	01/03/06	01/03/31	USD	700	689
Inter-American Development Bank	(b)	05/18/06	05/18/26	USD	500	500
Inter-American Development Bank	(b)	07/11/06	07/11/26	USD	50	20
Inter-American Development Bank	(b)	08/09/06	08/09/26	USD	280	242
Inter-American Development Bank	(b)	11/06/06	11/06/31	USD	580	352
Inter-American Development Bank	(b)	11/07/06	11/07/26	USD	50	21
Inter-American Development Bank	5.54	03/29/07	03/29/32	USD	350	129
Inter-American Development Bank	(b)	03/29/07	03/29/32	USD	240	15
Inter-American Development Bank	5.54	03/29/07	03/29/32	USD	1,200	216
Inter-American Development Bank	(b)	11/06/07	11/06/32	USD	50	2
Inter-American Development Bank	(b)	11/06/07	06/15/32	USD	60	4
Inter-American Development Bank	(b)	11/06/07	11/06/32	USD	40	1
Inter-American Development Bank	(b)	11/06/07	11/06/32	USD	20	3
Inter-American Development Bank	(b)	11/06/07	11/06/32	USD	72	7
Inter-American Development Bank	(b)	04/17/08	04/17/33	USD	100	9
Inter-American Development Bank	(b)	04/17/08	04/17/33	USD	200	20
Inter-American Development Bank	(b)	04/17/08	04/17/33	USD	630	223
Inter-American Development Bank	(b)	11/04/08	11/04/33	USD	230	2
Inter-American Development Bank	(b)	02/27/09	02/27/31	USD	16	1
Inter-American Development Bank	(b)	07/31/09	07/31/34	USD	850	425
Inter-American Development Bank	(b)	03/31/09	03/31/34	USD	50	0
Total					15,321	7,822

Paris Club Round 4	(m)	06/13/05	2002	Various	1,496	176
Paris Club Round 5	(n)	06/14/05	2008	Various	3,087	2,463
Total					4,583	2,639

FONPLATA	5.48	09/10/98	07/07/10	USD	4	1
FONPLATA	(g)	08/12/04	09/01/19	USD	51	47
FONPLATA	(h)	12/06/04	08/16/19	USD	22	16
FONPLATA	(l)	08/20/07	12/30/18	USD	5	1
FONPLATA	(j)	05/31/07	05/30/13	USD	1	0
Total					83	65

FIDA	(j)	09/29/97	06/15/14	SDR	11	6
FIDA	(j)	11/21/00	12/15/14	SDR	13	0
FIDA	(j)	11/27/06	12/15/22	SDR	15	0
Total					39	6

CAF	(d)	05/18/04	05/18/14	USD	141	103
CAF	(i)	08/29/07	09/01/22	USD	300	300
CAF	(i)	12/11/07	12/12/22	USD	200	63
CAF	(k)	02/12/08	06/02/20	USD	275	275
CAF	(i)	12/11/07	12/11/22	USD	80	23
CAF	(i)	05/21/08	05/21/23	USD	110	27
CAF	(e)	06/03/05	06/04/17	USD	35	27
Total					1,141	819

(a) Floating World Bank Rate + 0.5 %
(b) Floating IADB Rate
(c) LIBOR 6M + 1.2 %
(d) LIBOR 6M + 3.35 %
(e) LIBOR 6M + 2.9 %
(f) LIBOR 6M + 4 %
(g) LIBOR 6M + 3.5 %
(h) LIBOR 6M + 2.45 %
(i) LIBOR 6M + 1.05 %
(j) Floating FIDA Rate (k) LIBOR 6M + 1.08 % (l) LIBOR 6M + 2.25% (m) 50% of total corresponds to fixed rate (mainly in Euros with rates of 5% or greater), 31% corresponds to a variety of currencies (mainly Japanese yen) and rates and 18% (mainly denominated in dollars) is debt that accrues a variable rate of LIBOR plus a spread. (n) 52% of the obligations accrue a fixed rate (mainly in Euros with rates between 6% and 9%), 31% corresponds to a variety of currencies (mainly Japanese yen) and rates and 17% (denominated in dollars) accrues a variable rate of LIBOR plus a spread between 40 bps. and 62.5 bps.

TABLES AND SUPPLEMENTAL INFORMATION

Peso-Denominated Debt

Direct Debt

Peso-Denominated Performing Bonds

					Principal Amount
Lender	Interest Rate	Issue Date	Final Maturity	Currencies	Face Value	Outstanding as of September 30, 2009
					Millions of dollars	Millions of dollars
Bono del Tesoro Consolidado 2089		01/02/90	01/02/89	ARP	229	229
Boden 2013 / arp	Average deposit rate	04/01/03	10/01/13	ARP	24	13
BONAR ARG $ V	10.5%	06/12/07	06/12/12	ARP	390	390
BONAR $ 2013	Badlar + 3.50 %	04/04/08	04/04/13	ARP	1,284	1,284
BONAR $ 2014	15.4% - Badlar + 2.75 %	01/30/09	01/30/14	ARP	4,546	4,546
BONAR $ 2016	Badlar + 3.25 %	03/18/09	03/18/16	ARP	3,029	3,029
BONAR $ 2015	Badlar + 3.00 %	09/10/09	09/10/15	ARP	2,340	2,340
PRO 7	Floating- Savings account (a)	01/01/00	01/01/16	ARP	12	9
PRE 5	Floating- Savings account (a)	01/01/00	01/01/10	ARP	13	1
Letra del Tesoro - $ - FFRE	LEBAC	10/01/08	10/01/09	ARP	23	23
Letra del Tesoro - $ - ANSES	LEBAC	10/06/08	10/06/09	ARP	104	104
Letra del Tesoro - $ - FFRE	LEBAC	11/05/08	11/05/09	ARP	24	24
Letra del Tesoro- $ - FFRE	LEBAC	12/03/08	12/03/09	ARP	34	34
Letra del Tesoro - $ - FFRE	LEBAC	12/09/08	12/09/09	ARP	27	27
Letra del Tesoro - $ - FFRE	LEBAC	12/11/08	12/11/09	ARP	5	5
Letra del Tesoro - $ - Lotería Nacional S.E.	LEBAC	03/11/09	03/11/10	ARP	39	39
Letra del Tesoro - $ - FFRE	LEBAC	03/23/09	03/23/10	ARP	44	44
Letra del Tesoro - $ - FFRE	LEBAC	03/27/09	03/23/10	ARP	106	106
Letra del Tesoro - $ - FFRE	LEBAC	03/27/09	03/23/10	ARP	10	10
Letra del Tesoro - $ - FGS	14.6%	04/01/09	12/28/09	ARP	260	260
Letra del Tesoro - $ - FGS	LEBAC	04/20/09	11/20/09	ARP	104	104
Letra del Tesoro - $ - FGS	LEBAC	04/28/09	11/23/09	ARP	208	208
Letra del Tesoro - $ - FFRE	LEBAC	06/10/09	06/10/10	ARP	37	37
Letra del Tesoro - $ - SRT	14.8%	08/18/09	02/15/10	ARP	9	9
Letra del Tesoro - $ - FFRH	14.8%	08/18/09	02/15/10	ARP	33	33
Letra del Tesoro - $ - AFIP	14.2%	08/24/09	10/23/09	ARP	91	91
Letra del Tesoro - $ - INDER	14.2%	08/24/09	11/23/09	ARP	36	36
Letra del Tesoro - $ - AFIP	14.0%	08/31/09	11/30/09	ARP	104	104
Letra del Tesoro - $ - IAF	14.0%	09/07/09	12/07/09	ARP	39	39
Letra del Tesoro - $ - FFIT	14.0%	09/07/09	12/07/09	ARP	65	65
Letra del Tesoro - $ - INSSJyP	14.6%	09/17/09	03/16/10	ARP	424	424
Letra del Tesoro - $ - AGP	13.9%	09/17/09	12/16/09	ARP	10	10
Letra del Tesoro - $ - FFIT	13.9%	09/17/09	12/07/09	ARP	65	65
Letra del Tesoro - $ - FFRE	LEBAC	09/24/09	09/24/10	ARP	21	21
Letra del Tesoro - $ - FGS	14.3%	09/28/09	03/15/10	ARP	351	351
AMPAROS Y EXCEPCIONES	Various			ARP		1
BODEN 2011	2.0%	04/30/03	04/30/11	ARP + CER	1,672	607
BODEN 2014	2.0%	09/30/04	09/30/14	ARP + CER	239	363
PR 11	2.0%	02/03/02	12/03/10	ARP + CER	247	77
PRE 8	2.0%	02/03/02	01/03/10	ARP + CER	844	179
PR 12	2.0%	02/03/02	01/03/16	ARP + CER	399	629
PR 13	2.0%	03/15/04	03/15/24	ARP + CER	477	840
PRE 9	2.0%	03/15/04	03/15/14	ARP + CER	262	338
PAR IN PESOS	Fixed rate - Step up - 1.18%	12/31/03	12/31/38	ARP + CER	1,366	2,169
DISCOUNT IN PESOS	5.83%	12/31/03	12/31/33	ARP + CER	3,191	5,945
CUASIPAR IN PESOS	3.31%	12/31/03	12/31/45	ARP + CER	6,159	11,715
AMPAROS Y EXCEPCIONES	Various			ARP + CER		48
TOTAL					29,000	37,031

(a) Floating- Savings account rate as of September 30, 2009 was 0.498%

E-3

TABLES AND SUPPLEMENTAL INFORMATION

Foreign Currency-Denominated Debt

Direct Debt

Foreign Currency-Denominated Performing Bonds

					Principal Amount
Lender	Interest Rate	Issue Date	Final Maturity	Currencies	Face Value	Outstanding as of September 30, 2009
					Millions of dollars	Millions of dollars
BODEN 2012	LIBOR	02/03/02	08/03/12	USD	17,450	6,546
BODEN 2013	LIBOR maximum 3%	10/30/02	04/30/13	USD	1,942	971
OCMO		10/30/02	10/30/09	OCM	8	8
Nontransferable notes from the BCRA 2016	Maximum LIBOR International reserves rate -1%	01/03/06	01/03/16	USD	9,530	9,530
BONAR V	7.0%	03/28/06	03/28/11	USD	1,500	1,500
BONAR VII	7.0%	09/12/06	09/12/13	USD	2,000	2,000
BONAR X	7.0%	04/17/07	04/17/17	USD	2,074	2,074
BODEN 2015	7.0%	10/03/05	10/03/15	USD	5,818	5,818
Letra del Tesoro - US$ - FGS	3.5%	07/29/09	01/27/10	USD	200	200
Letra del Tesoro - US$ - FGS	3.5%	08/18/09	01/27/10	USD	100	100
Letra del Tesoro - US$ - FGS	4.0%	09/24/09	03/23/10	USD	150	150
Letra del Tesoro - US$ - FFRE	1.5%	09/07/09	09/07/10	USD	37	37
Letra del Tesoro - US$ - FGS	3.5%	05/18/09	11/16/09	USD	100	100
Letra del Tesoro - US$ - Lotería Nacional S.E.	0.7%	08/11/09	11/09/09	USD	47	47
Letras del Tesoro en Garantía - US$		05/29/09	12/29/09	USD	353	353
PAR IN US$	Fixed rate - Step up - 2.5%	12/31/03	12/31/38	USD	6,559	6,559
PAR IN EUROS	Fixed rate - Step up - 2.26%	12/31/03	12/31/38	EUR	7,421	7,421
PAR IN YEN	Fixed rate - Step up - 0.45%	12/31/03	12/31/38	JPY	234	234
DISCOUNT IN US$	8.3%	12/31/03	12/31/33	USD	4,185	5,245
DISCOUNT IN EUROS	7.8%	12/31/03	12/31/33	EUR	3,321	4,110
DISCOUNT IN YEN	4.3%	12/31/03	12/31/33	JPY	65	73
AMPAROS	Various			USD		18
TOTAL					63,095	53,096

E-4

TABLES AND SUPPLEMENTAL INFORMATION

Peso-Denominated Debt

Direct Debt

Peso-Denominated Defaulted Bonds

					Principal Amount
Lender	Interest Rate	Issue Date	Final Maturity	Currencies	Face Value	Outstanding as of September 30, 2009
					Millions of dollars	Millions of dollars
BOCON PROVEEDOR 1ra S. PESOS	Floating- Savings account	04/01/91	04/01/07	ARP	8	6
BOCON PROVEEDOR 2da S. PESOS	Floating- Savings account	12/28/94	12/28/10	ARP	0	0
BOCON PROVEEDOR 3ra S. PESOS	Floating- Savings account	01/15/99	04/15/07	ARP	4	3
BOCON PROVEEDOR 5ta S. PESOS	Floating- Savings account	04/15/01	04/15/07	ARP	3	3
EUROLETRA/$/11.75%/2007	11.75%	02/12/97	02/12/07	ARP	0	0
EUROLETRA/$/8.75%/2002	8.75%	07/10/97	07/10/02	ARP	0	0
DTO.1023/7-7-95	Floating- Savings account	04/24/95	04/01/07	ARP	13	10
LETES/ Vto: 15-03-2002	2%	03/16/01	03/15/02	ARP + CER	10	22
LETES/ Vto: 15-02-02	2%	12/14/01	02/15/02	ARP + CER	5	11
LETES/ Vto: 8-3-2002	2%	12/14/01	03/08/02	ARP + CER	5	11
LETES/ Vto: 22-02-2002	2%	12/28/01	02/22/02	ARP + CER	1	3
LETES/Vto: 22-03-2002	2%	12/28/01	03/22/02	ARP + CER	1	3
BONEX 1992 / PESIFICADO	2%	09/15/92	05/08/03	ARP + CER	10	23
FERROBONOS / PESIFICADO	2%	10/01/91	10/01/30	ARP + CER	0	0
PRE4 / PESIFICADO	2%	09/01/92	09/01/02	ARP + CER	47	25
PRO2 / PESIFICADO	2%	04/01/91	04/01/07	ARP + CER	20	32
PRO4 / PESIFICADO	2%	12/28/94	12/28/10	ARP + CER	17	48
PRO6 / PESIFICADO	2%	01/15/99	04/15/07	ARP + CER	26	51
PRO8 / PESIFICADO	2%	01/01/00	01/01/16	ARP + CER	0	1
PRO10 / PESIFICADO	2%	04/15/01	04/15/07	ARP + CER	2	5
PRE6 / PESIFICADO	2%	01/01/00	01/01/10	ARP + CER	1	2
BONTE 06 / PESIFICADO	2%	02/21/01	05/15/06	ARP + CER	7	16
BONTE 05 / PESIFICADO	2%	02/21/00	05/21/05	ARP + CER	25	58
BONTE 03 / PESIFICADO	2%	02/21/00	05/21/03	ARP + CER	29	66
BONTE 02 / PESIFICADO	2%	05/09/97	05/09/02	ARP + CER	56	130
BONTE 03 V / PESIFICADO	2%	07/21/98	07/21/03	ARP + CER	2	5
BONTE 04 / PESIFICADO	2%	05/24/99	05/24/04	ARP + CER	19	44
B-P 02 / E+4.00% / PESIFICADO	2%	04/24/00	04/24/02	ARP + CER	0	0
B-P 02 / E+3.30% / PESIFICADO	2%	08/22/00	08/22/02	ARP + CER	1	1
BONO/2002/9% PESIFICADO	2%	04/16/01	04/16/02	ARP + CER	2	5
B-P 02 / E+5.80% / PESIFICADO	2%	10/30/00	10/30/02	ARP + CER	0	0
B-P 04 / E+4.35% / PESIFICADO	2%	02/16/01	02/16/04	ARP + CER	0	0
TOTAL					315	588

E-5

TABLES AND SUPPLEMENTAL INFORMATION

Foreign Currency-Denominated Debt

Direct Debt

Foreign-Currency Denominated Defaulted Bonds

					Principal Amount
Lender	Interest Rate	Issue Date	Final Maturity	Currencies	Face Value	Outstanding as of September 30, 2009
					Millions of dollars	Millions of dollars
GLOBAL BOND/US$/7%-15.5%/2008	7.00% - 15.50%	06/19/01	12/19/08	USD	441	441
GLOBAL BOND/US$/12.25%/2018	12.25%	06/19/01	06/19/18	USD	449	813
GLOBAL BOND/US$/12.00%/2031	12.00%	06/19/01	06/19/31	USD	449	804
GLOBAL BOND/$/10%-12%/2008	10.00% - 12.00%	06/19/01	09/19/08	USD	595	595
DISCOUNT/US$/L+0.8125%/2023	LIBOR + 0.8125	03/31/93	03/31/23	USD	78	78
PAR BONDS/US$/6%/2023	6.00%	03/31/93	03/31/23	USD	185	185
DISCOUNT/DEM/L+0.8125%/2023	LIBOR + 0.8125	03/31/93	03/31/23	EUR	11	11
PAR BONDS/DEM/5.87%/2023	5.87%	03/31/93	03/31/23	EUR	68	68
FLOATING RATE BOND/L+0.8125%	LIBOR	03/31/93	03/31/05	USD	192	107
GLOBAL BOND/US$/8.375%/2003	8.375%	12/20/93	12/20/03	USD	476	476
GLOBAL BOND/US$/11%/2006	11%	10/09/96	10/09/06	USD	471	471
GLOBAL BOND/US$/11.375%/2017	11.375%	01/30/97	01/30/17	USD	545	545
GLOBAL BOND/US$/9.75%/2027	9.75%	09/19/97	09/19/27	USD	197	197
SPAN/US$/SPREAD AJUS+T.F./2002	Floating	12/16/97	11/30/02	USD	82	82
EUROLETRA/EUR/8.75%/2003	8.75%	02/04/98	02/04/03	EUR	340	340
FRANs/US$/TASA FLOTANTE/2005	Floating	04/13/98	04/10/05	USD	301	301
GLOBAL BOND/US$/8.875%/2029	8.875%	03/01/99	09/01/29	USD	34	34
GLOBAL BOND/US$/11%/2005	11%	12/04/98	12/04/05	USD	301	301
GLOBAL BOND/US$/12.125%/2019	12.125%	02/25/99	02/25/19	USD	59	59
EUROLETRA/US$/LIBOR+5.75%/2004	LIBOR + 5.75%	04/06/99	04/06/04	USD	78	78
GLOBAL BOND/US$/11.75%/2009	11.75%	04/07/99	04/07/09	USD	384	384
GLOBAL/US$/CERO CUPON/2000-04	CUPON CERO	10/15/99	10/15/04	USD	170	170
GLOBAL BOND/US$/10.25%/2030	10.25%	07/21/99	07/21/30	USD	124	124
GLOBAL BOND/US$/12.00%/2031	12.00%	01/31/01	01/31/31	USD	0	0
GLOBAL BOND/US$/12.375%/2012	12.38%	02/21/01	02/21/12	USD	168	168
EUROLETRA/US$/BADLAR+2.98/2004	BADLAR + 2.98%	05/11/01	05/11/04	USD	1	1
EUROLETRA/US$/ENC+4.95%/2004	ENCUESTA + 4.95%	05/11/01	05/11/04	USD	15	15
EUROLETRA/JPY/7.40%/2006	7.40%	04/04/96	04/04/06	JPY	3	3
EUROLETRA/JPY/7.40%/2006-2	7.40%	04/25/96	04/25/06	JPY	11	11
EUROLETRA/JPY/7.40%/2006-3	7.40%	05/15/96	05/15/06	JPY	1	1
EUROLETRA/JPY/6%/2005	6.00%	11/12/96	03/24/05	JPY	11	11
EUROLETRA/JPY/5%/2002	5.00%	12/20/96	12/20/02	JPY	43	43
EUROLETRA/JPY/4.40%/2004	4.40%	05/27/97	05/27/04	JPY	22	22
EUROLETRA/DEM/7%/2004	7.00%	03/18/97	03/18/04	EUR	277	277
EUROLETRA/DEM/8%/2009	8.00%	10/30/97	10/30/09	EUR	236	236
EUROLETRA/EUR/11%-8%/2008	11.00% - 8.00%	02/26/98	02/26/08	EUR	376	376
EUROLETRA/EUR/8-8.25-9%/2010	8.00% - 8.25% - 9.00%	07/06/98	07/06/10	EUR	253	253
EUROLETRA/DEM/7.875%/2005	7.88%	07/29/98	07/29/05	EUR	63	63
EUROLETRA/DEM/14%-9%/2008	14.00% - 9.00%	11/19/98	11/19/08	EUR	111	111
EUROLETRA/JPY/3.50%/2009	3.50%	08/11/99	08/11/09	JPY	28	28
BONO R.A./JPY/5.40%/2003	5.40%	12/17/99	12/17/03	JPY	6	6
BONO R.A./EUR/9%/2003	9.00%	06/20/00	06/20/03	EUR	666	666
SAMURAI/JPY/5.125%/2004	5.13%	06/14/00	06/14/04	JPY	41	41
BONO R.A./EUR/10%/2007	10.00%	09/07/00	09/07/07	EUR	233	233
BONO RA/JPY/SAMURAI/4.85%/2005	4.85%	09/26/00	09/26/05	JPY	30	30
EUROLETRA/ATS/7%/2004	7.00%	03/18/97	03/18/04	EUR	16	16
BONO R.A./EUR/9%/2006	9.00%	04/26/99	04/26/06	EUR	265	265
BONO R.A./EUR/10%/2004	10.00%	12/07/99	12/07/04	EUR	252	252
BONO R.A./EUR/9.75%/2003	9.75%	11/26/99	11/26/03	EUR	162	162
EUROLETRA/EUR/10%/2005	10.00%	01/07/00	01/07/05	EUR	423	423
EUROLETRA/EUR/EURIB+5.10%/2004	EURIBOR + 5.10%	12/22/99	12/22/04	EUR	88	88
BONO R.A./EUR/10.25%/2007	10.25%	01/26/00	01/26/07	EUR	473	473
EUROLETRA/EUR/8.125%/2004	8.13%	04/04/00	10/04/04	EUR	339	339
EUROLETRA/EUR/9%/2005	9.00%	05/24/00	05/24/05	EUR	442	442
EUROLETRAS/EUR/9.25%/2004	9.25%	07/20/00	07/20/04	EUR	602	602
EUROLETRA/EUR/10.00%/2007	10.00%	02/22/01	02/22/07	EUR	263	263
EUROLETRA/ITL/11%/2003	11.00%	11/05/96	11/05/03	EUR	176	176
EUROLETRA/ITL/10%/2007	10.00%	01/03/97	01/03/07	EUR	197	197
EUROLETRA/ITL/LIBOR+1.6%/2004	LIBOR + 1.60%	05/27/97	05/27/04	EUR	144	144
EUR/ITL/10-7.625/SWAP-CAN/2007	10.00% - 7.625%	08/11/97	08/11/07	EUR	258	258
EUROLETRA/ITL/9.25%-7%/2004	9.25% - 7.00%	10/21/97	03/18/04	EUR	250	250
EUROLETRA/ITL/9%-7%/2004	9.00% - 7.00%	10/24/97	03/18/04	EUR	129	129
EUROLETRA/DEM/10.50%/2002	10.50%	11/14/95	11/14/02	EUR	206	206
EUROLETRA/DEM/10.25%/2003	10.25%	02/06/96	02/06/03	EUR	183	183
EUROLETRA/DEM/11.25%/2006	11.25%	04/10/96	04/10/06	EUR	270	270
EUROLETRA/DEM/11.75%/2011	11.75%	05/20/96	05/20/11	EUR	376	376
EUROLETRA/DEM/9%/2003	9.00%	09/19/96	09/19/03	EUR	65	65
EUROLETRA/DEM/12%/2016	12.00%	09/19/96	09/19/16	EUR	99	99
EUROLETRA/DEM/11.75%/2026	11.75%	11/13/96	11/13/26	EUR	139	139
EUROLETRA/DEM/8.50%/2005	8.50%	12/23/96	02/23/05	EUR	195	195
BONO R.A./EUR/10%-8%/2008	10.00% - 8.00%	04/03/98	02/26/08	EUR	189	189
EURO-BONO/ESP/7.50%/2002	7.50%	05/23/97	05/23/02	EUR	45	45
EUROLETRA/CHF/7%/2003	7.00%	12/04/96	12/04/03	CHF	74	74
EUROLETRA/GBP/10%/2007	10.00%	06/25/97	06/25/07	GBP	52	52
GLOBAL BOND/EUR/8.125%/2008	8.13%	04/21/98	04/21/08	EUR	457	457
EUROLETRA/EUR/CUP-FIJO/2028	Fixed Amount Coupon	05/28/98	05/28/28	EUR	98	98
EUROLETRA/EUR/8.50%/2010	8.50%	07/30/98	07/30/10	EUR	286	286
BONO R.A./EUR/8%/2002	8.00%	02/25/99	02/25/02	EUR	126	126
BONO R.A./EUR/15%-8%/2008	15.00% - 8.00%	02/26/99	02/26/08	EUR	189	189
EUROLETRA/ITL/10.375%-8%/2009	10.375% - 8.00%	03/12/98	10/30/09	EUR	244	244
EUROLETRA/ITL/LIBOR+2.50%/2005	LIBOR + 2.50%	07/08/98	07/08/05	EUR	306	306
BONO R.A./EUR/9.50%/2004	9.50%	03/04/99	03/04/04	EUR	213	213
BONO R.A./EUR/14%-8%/2008	14.00% - 8.00%	04/06/99	02/26/08	EUR	138	138
EUROLETRA/EUR/10.50%-7%/2004	10.50% - 7.00%	05/10/99	03/18/04	EUR	253	253
BONO R.A./EUR/9%/2009	9.00%	05/26/99	05/26/09	EUR	401	401
EUROLETRA/EUR/7.125%/2002	7.125%	06/10/99	06/10/02	EUR	113	113
BONO R.A./EUR/8.50%/2004	8.50%	07/01/99	07/01/04	EUR	437	437
BONO R.A./EUR/EURIBOR+4%/2003	EURIBOR + 4%	07/22/99	07/22/03	EUR	46	46
BONO R.A./EUR/9.25%/2002	9.25%	10/21/99	10/21/02	EUR	383	383
GLOBAL BOND/US$/12%/2020	12.00%	02/03/00	02/01/20	USD	84	84
GLOBAL BOND/US$/11.375%/2010	11.375%	03/15/00	03/15/10	USD	201	201
GLOBAL BOND/US$/11.75%/2015	11.75%	06/15/00	06/15/15	USD	170	170
TOTAL					19,141	19,776

E-6

Title of Issue		Amount as to which registration is effective		Names of exchanges on which registered
N/A		N/A		N/A

By:	/s/ Adrián E. Cosentino
	Name:	Adrián E. Cosentino
	Title:	Undersecretary of Finance of the Ministry of Economy and Public Finance of the Republic of Argentina

	Page


CERTAIN DEFINED TERMS AND CONVENTIONS	1

DATA DISSEMINATION	8

FORWARD-LOOKING STATEMENTS	9

SUMMARY	10

THE REPUBLIC OF ARGENTINA	18

THE ARGENTINE ECONOMY	24

FOREIGN TRADE AND BALANCE OF PAYMENTS	58

MONETARY SYSTEM	80

PUBLIC SECTOR FINANCES	101

PUBLIC SECTOR DEBT	134

	Argentine peso per U.S. dollar(1)
	High	Low	Average	Period-end
2004	3.07	2.80	2.94	2.97
2005	3.05	2.86	2.92	3.03
2006	3.11	3.03	3.07	3.07
2007	3.18	3.06	3.12	3.15
2008	3.45	3.03	3.16	3.45
2009 (through December 31)	3.85	3.45	3.73	3.80
January	3.49	3.45	3.46	3.49
February	3.56	3.49	3.51	3.56
March	3.72	3.59	3.65	3.71
April	3.72	3.67	3.69	3.72
May	3.75	3.69	3.72	3.75
June	3.80	3.74	3.77	3.80
July	3.83	3.80	3.81	3.83
August	3.85	3.82	3.84	3.85
September	3.85	3.83	3.84	3.84
October	3.85	3.82	3.83	3.82
November	3.82	3.80	3.81	3.81
December	3.82	3.79	3.81	3.80

	2004		2005		2006		2007		2008
GDP (in millions of pesos)(3)	Ps.	447,643	Ps.	531,939	Ps.	654,439	Ps.	812,456	Ps.	1,032,758
GDP (in millions of U.S. dollars)(3)	U.S.$	152,183	U.S.$	181,964	U.S.$	212,895	U.S.$	260,789		326,583
Per capita GDP (in U.S. dollars)(3)		3,917		4,630		5,357		6,490		8,040
Per capita income(1) (in U.S. dollars)		3,704		4,489		5,243		6,369		7,865
Peso / U.S. dollar exchange rate(2)		2.94		2.92		3.07		3.12		3.16

	For the year ended and as of December 31 (unless otherwise specified),
	2004			2005			2006			2007			2008
THE ECONOMY:
Real GDP (in billions of 1993 pesos)	Ps.	279.1		Ps.	304.8		Ps.	330.6		Ps.	359.2		Ps.	383.4
Rate of change from prior year		9.0	%		9.2	%		8.5	%		8.7	%		6.8	%
Nominal GDP		447.6			531.9			654.4			812.5			1,032.8
Inflation (as measured by CPI)(1)		6.1	%		12.3	%		9.8	%		8.5	%		7.2	%
Unemployment rate(2)		12.1	%		10.1	%		8.7	%		7.5	%		7.3	%
BALANCE OF PAYMENTS (in billions of U.S. dollars):
Current account	U.S.$	3.2		U.S.$	5.3		U.S.$	7.8		U.S.$	7.4		U.S.$	7.1
Of which:
Imports of goods		21.3			27.3			32.6			42.5			54.6
Exports of goods		34.6			40.4			46.5			56.0			70.0
Capital and financial account		1.5			3.4			(5.8	)		5.7			(7.7	)
Change in gross international reserves deposited in the Central Bank		5.3			8.9			3.5			13.1			0.01
Gross international reserves of the Central Bank		19.6			28.1			32.0			46.2			46.4
PUBLIC FINANCE:
Revenues	Ps.	104.9		Ps.	126.3		Ps.	158.2		Ps.	217.7		Ps.	286.2
As a % of GDP(3)		23.4	%		23.7	%		24.2	%		26.8	%		27.7	%
Expenditures		87.6			106.7			135.1			192.0			253.7
As a % of GDP(3)		19.6	%		20.1	%		20.6	%		23.6	%		24.6	%
Primary fiscal balance(4)		17.3			19.6			23.2			25.7			32.5
As a % of GDP(3)		3.9	%		3.7	%		3.5	%		3.2	%		3.1	%
Overall fiscal balance		11.7			9.4			11.6			9.3			14.7
As a % of GDP(3)		2.6	%		1.8	%		1.8	%		1.1	%		1.4	%
PUBLIC DEBT(5) (in billions of U.S. dollars):
Peso-denominated debt(6)	U.S.$	39.5		U.S.$	62.7		U.S.$	65.3		U.S.$	68.2		U.S.$	69.1
Foreign currency-denominated debt(6)		106.5			62.4			66.0			71.1			70.5
Total principal arrears		30.5			3.3			4.4			4.4			5.2
Total interest arrears		14.9			0.8			1.0			1.1			1.1
Total gross public debt(7)(8)	U.S.$	191.3		U.S.$	129.2		U.S.$	136.7		U.S.$	144.7		U.S.$	146.0
Total gross debt as a % of GDP(3)		127.3	%		73.9	%		64.0	%		56.1	%		48.8	%
Total gross debt as a % of Government revenues		532.9	%		297.2	%		265.6	%		206.6	%		161.2	%
Untendered Debt (including arrears)(9)		-		U.S.$	23.6		U.S.$	26.1		U.S.$	28.9		U.S.$	29.0

	Argentina			Brazil			Chile			Colombia			Mexico			Peru			United States
Per capita GNI(2)	U.S.$	6,050		U.S.$	5,910		U.S.$	8,350		U.S.$	3,250		U.S.$	8,340		U.S.$	3,450		U.S.$	46,040
Life expectancy (in years)		75			72			78			73			74			71			78
Infant mortality (% of live births)		1.4	%		1.9	%		0.8	%		1.7	%		2.9	%		2.1	%		0.8	%
Adult literacy rate (% of population age 15 or older)		97	%		89	%		96	%		93	%		92	%		88	%		n/a

	Chamber of Deputies(1)									Senate(2)
	2005			2007			2009			2005			2007		2009
Party:
Peronist Party		12			8			19			25			25		10
Justicialist Front Alliance		―			―		―				3			3
Front for Victory Alliance		―			―		―				7			7
Front for Victory(3)		116			128			95			4			4		31
Federal Peronist		19			―		―				―			―
Radical Civic Union		36			24			16	(4)		14	(5)		14		9	(4)
Frepaso		―			―		―				1	(6)		1
ARI/Civic Coalition		14			27			60	(4)		―			―		11	(4)
Unión PRO		―			15			26			―			―
Others(7)		59			53			41	(4)		18			18		11	(4)
Total		256	(8)		255	(9)		257			72			72		72

	Fourth Quarter of
	2004			2005			2006			2007			2008
Greater Buenos Aires area:
Labor force rate(2)		48.3	%		48.3	%		48.3	%		47.5	%		48.2	%
Employment rate(3)		42.0			42.9			43.6			43.8			44.5
Unemployment rate(4)		13.0			11.0			9.8			7.7			7.7
Underemployment rate(5)		15.8			13.0			12.2			9.9			10.3
Major interior cities:(1)
Labor force rate(2)		43.1			43.2			43.5			43.3			43.6
Employment rate(3)		38.5			39.3			40.4			40.2			40.6
Unemployment rate(4)		10.8			8.9			7.3			7.2			6.9
Underemployment rate(5)		12.3			10.3			9.2			8.1			7.7
Total urban:
Labor force rate(2)		45.9			45.9			46.1			45.6			46.0
Employment rate(3)		40.4			41.3			42.1			42.1			42.6
Unemployment rate(4)		12.1			10.1			8.7			7.5			7.3
Underemployment rate(5)		14.2	%		11.9	%		10.8	%		9.1	%		9.1	%

	Three months ended December 31,
	2004			2005			2006			2007			2008

Formal		51.1	%		54.5	%		57.1	%		60.7	%		62.2	%
Informal		48.9			45.5			42.9			39.3			37.8
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

As of December 31,	Average Monthly Minimum Wage		Average Cost of Basic Basket (1)		Average Monthly Minimum Wage (as a % of Average Cost of Basic Basket)

2004	Ps.	383	Ps.	727		52.8	%
2005		555		788		70.5
2006		694		862		80.5
2007		858		934		91.9
2008		1,075		976		110.1

	(% change from prior year)
	Private Sector						Public Sector			Total
	Formal			Informal			Public Sector			Total
December 2004		11.0	%		11.5	%		4.3	%		9.3	%
December 2005		26.0			12.6			12.9			20.3
December 2006		19.4			20.6			16.3			18.9
December 2007		20.0			24.1			28.4			22.7
December 2008		23.4	%		37.5	%		21.2	%		25.2	%

Second half of	Households			Population
2004		29.8	%		40.2	%
2005		24.7			33.8
2006		19.2			26.9
2007(2)		14.0			20.6
2008		10.1			15.3

	Six months ended December 31,									Three months ended March 31,
Income group	2004			2005			2006			2007
Lowest 40%		12.1	%		12.4	%		12.1	%		12.6	%
Next 20%		13.5			13.8			13.5			14.3
Next 20%		21.4			21.5			21.4			22.0
Highest 20%		53.0			52.4			53.0			51.1
Highest 10%		36.6	%		36.0	%		36.6	%		34.4	%

	2004(10)			2005(10)(11)			2006(11)			2007(11)			2008(11)
Current Account:
Exports(1)	U.S.$	34,576		U.S.$	40,387		U.S.$	46,546		U.S.$	55,980		U.S.$	70,021
Imports(2)		21,311			27,300			32,588			42,525			54,557
Trade balance		13,265			13,087			13,958			13,456			15,464
Non-financial services, net(3)		(1,331	)		(992	)		(501	)		(466	)		(951	)
Financial services:
Interest, net		(6,956	)		(3,358	)		(1,151	)		(628	)		(1,397	)
Dividends, net		(2,287	)		(3,895	)		(4,939	)		(5,241	)		(6,094	)
Other income (expense)		(39	)		(51	)		(60	)		(72	)		(59	)
Total financial services, net		(9,283	)		(7,304	)		(6,150	)		(5,941	)		(7,550	)
Current transfers, net		561			484			459			335			115
Total current account		3,212			5,275			7,768			7,384			7,078
Capital and Financial Account:
Financial account:
Central Bank(4)		(1,990	)		(2,922	)		(10,400	)		1,493			2,163
Other financial entities(5)		(1,107	)		(1,434	)		(121	)		74			(90	)
Non-financial public sector(6)		4,917			3,380			3,042			2,401			(537	)
Non-financial private sector(7)		(499	)		4,311			1,573			1,572			(9,445	)
Total financial account		1,321			3,335			(5,905	)		5,540			(7,909	)
Capital account(8)		196			89			97			116			181
Capital and financial account		1,518			3,424			(5,808	)		5,656			(7,728	)
Errors and omissions		590			158			1,571			58			659
Balance of payments	U.S.$	5,319		U.S.$	8,857		U.S.$	3,530		U.S.$	13,098		U.S.$	9
Change in gross international reserves deposited in the Central Bank(9)	U.S.$	5,319		U.S.$	8,857		U.S.$	3,530		U.S.$	13,098		U.S.$	9

	As of December 31,										As of November 30,
	2004		2005		2006		2007		2008		2009
Currency in circulation(2)	Ps.	33,852	Ps.	43,742	Ps.	53,781	Ps.	67,022	Ps.	74,046	Ps.	75,234
M1		66,368		84,123		100,686		126,890		148,484		151,564
M2		88,356		110,082		131,098		165,538		188,337		192,955
M3		151,385		181,149		225,788		274,654		313,071		346,039
Monetary base	Ps.	52,477	Ps.	54,710	Ps.	80,066	Ps.	99,279	Ps.	109,449	Ps.	110,925

	Average		At end of period
2004		2.94		2.97
2005		2.92		3.03
2006		3.07		3.07
2007		3.12		3.15
2008		3.16		3.45
2009		3.73		3.80
January		3.46		3.49
February		3.51		3.56
March		3.65		3.71
April		3.69		3.72
May		3.72		3.75
June		3.77		3.80
July		3.81		3.83
August		3.84		3.85
September		3.84		3.84
October		3.83		3.82
November		3.81		3.81
December		3.81		3.80

	Consumer Price Index			Wholesale Price Index

2004		6.1	%		7.9	%
2005		12.3			10.6
2006		9.8			7.2
2007		8.5			14.6
2008(2)		7.2			8.8
2009 (through December 31)		7.7			10.0
January		0.5			(0.1	)
February		0.4			0.1
March		0.6			1.1
April		0.3			0.5
May		0.3			0.5
June		0.4			1.1
July		0.6			1.2
August		0.8			1.0
September		0.7			1.0
October		0.8			0.9
November		0.8			1.1
December		0.9	%		1.0	%

	As of December 31,										As of October 31,
	2004		2005		2006		2007		2008		2009
State-owned banks(1)		14		13		12		12		12		12
Private banks		59		58		60		55		55		54
Financial entities other than banks		18		18		18		18		17		17
Total		91		89		90		85		84		83

	Public Banks(7)			Private Banks			Financial Companies			Credit Unions			Financial System
Risk category:
Current(1)		96.86	%		95.3	%		85.6	%		75.8	%		95.5	%
Potentially problematic:
Under observation and inadequate payment(2)		1.27			1.6			3.9			3.6			1.6
Under negotiation or restructuring(3)		0.8			0.9			3.3			4.1			1.0
Problematic(4)		0.55			1.6			4.0			8.6			1.3
Insolvent(5)		0.51			0.6			3.2			7.9			0.7
Irrecoverable(6)		0.0			0.0			0.0			0.0			0.0
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	Actual first nine months of 2009(4)			Projected 2009(5)			Projected 2010(1)
Real GDP growth		0.24	%		4.0	%		2.5	%
Inflation(2)		6.2	%		7.2	%		6.6	%
Average exchange rate(3)		3.70			3.19			3.95

	Projected 2009			2009			Projected 2010

Total revenues(2)(4)	Ps.	254,391		Ps.	260,214		Ps.	297,192
Total current revenues		253,546			260,045			296,561
Tax revenues(2)		230,185			227,292			271,502
Other revenues		23,361			32,753			25,059
Total capital revenues		845			169			632
Intra public sector transfer		60,560			59,315			68,847
Primary expenditures(3)(4)		239,070			242,929			268,586
Primary surplus (deficit)(2)(3)		15,321			17,286			28,607
As a percentage of GDP(5)		1.38	%		1.54	%		2.3	%
Interest expenditures		25,397			24,417			28,025
As a percentage of GDP(5)		2.3	%		2.2	%		2.2	%
Overall fiscal balance(2)(3)	Ps.	(10,077	)	Ps.	(7,131	)	Ps.	582
As a percentage of GDP(5)		(0.9	)%		(0.6	)%		0.05	%

	Year ended December 31,
		2004		2005		2006		2007			2008
Revenues
Current revenues:
Administration taxes:
Provincial taxes		Ps.	18,072	Ps.	21,927	Ps.	27,292	Ps.	34,295		Ps.	45,465
National taxes:
Co-participation			20,414		25,494		31,055		41,061			50,342
Other national taxes			7,855		9,027		11,257		14,166			18,926
Total national taxes			28,269		34,521		42,312		55,226			69,268
Total administration taxes			46,341		56,448		69,603		89,522			114,733
Other non-tax revenue			5,042		5,453		7,577		7,743			10,157
Sale of goods and services of the public administration			545		495		553		730			1,071
Property taxes			193		299		500		627			806
Current transfers			3,655		5,428		5,385		7,736			9,154
Total current revenues			55,776		68,123		83,619		106,358			135,921
Capital revenue			1,751		3,478		5,078		6,831			7,530
Total revenues			57,526		71,602		88,697		113,189			143,451

Expenditures
Current expenditures:
Consumption expenditures:
Provincial administration wages			23,058		30,817		40,160		53,003			73,958
Consumer goods			1,965		2,302		2,537		3,282			4,280
Services			4,328		5,526		6,568		8,196			9,612
Total consumption expenditures			29,351		38,645		49,266		64,481			87,850
Interest payments			1,621		1,912		2,300		2,484			2,668
Current transfers			13,868		17,142		21,008		26,852			34,879
Total current expenditures			44,841		57,699		72,574		93,817			125,397

Capital expenditures
Direct investment			5,058		8,349		11,203		14,637			16,976
Capital transfers			1,173		1,879		2,757		3,040			3,678
Financial investment			1,615		1,570		1,638		2,432			3,002
Total capital expenditures			7,846		11,798		15,598		20,109			23,656
Total expenditures			52,686		69,497		88,172		113,926			149,053

Fiscal balance		Ps.	4,840	Ps.	2,104	Ps.	525	Ps.	(736	)	Ps.	(5,602	)

	For the year ended December 31,										For the year ended December 31,
	2004		2005		2006		2007		2008		2009
Bonars		-		-		2,500		3,561		274		-
Peso-denominated debt(2)		-		-		-		487		274		-
Foreign currency-denominated debt(3)		-		-		2,500		3,074		-		-
Bodens		-		2,495		-		-		-		-
Peso-denominated debt(4)		-		1,115		-		-		-		-
Foreign currency-denominated debt(5)		-		1,380		-		-		-		-
Total Argentine securities issued		-		2,495		2,500		3,561		274		-

	As of December 31,										As of September 30,
	2004		2005		2006		2007		2008		2009
Performing debt
Medium-term and long-term debt:
Official debt:
Multilateral debt:
IMF	U.S.$	14,071	U.S.$	9,453	U.S.$	0	U.S.$	0	U.S.$	0	U.S.$	0
World Bank		7,592		6,989		6,283		5,728		5,100		5,158
Inter-American Development Bank		8,896		8,729		8,703		8,785		8,861		9,229
Corporación Andina de Fomento		0		34		98		416		680		818,9
FONPLATA		38		51		64		82		92		87,2
European Investment Bank		39		36		34		31		28		26,3
International Fund for the Development of Agriculture		2		5		7		8		7		6.5
Total multilateral debt		30,639		25,296		15,189		15,050		14,769		15,326
Bilateral debt		420		907		93		986		928		1,511
Total official debt		31,059		26,203		15,281		16,036		15,697		16,837
Private creditors:
Suppliers		71		215		185		156		124		375
Commercial banks		53		52		650		1,027		1,345		4,678
Total debt to private creditors		124		267		835		1,183		1,469		5,053
Bonds:
Peso-denominated bonds		5,943		27,297		29,944		31,780		30,907		34,754
Foreign currency-denominated bonds		13,754		34,052		48,466		53,624		53,971		52,108
Total bonds		19,697		61,348		78,410		85,404		84,878		86,862
National Guaranteed Loans		14,646		14,269		13,981		13,037		11,995		4,560
Bogars		10,208		11,539		11,824		11,849		11,027		9,894
Total medium-term and long-term debt		75,733		113,627		120,331		127,510		125,065		123,207
Short-term debt:
Treasury notes		0		1,555		1,309		1,955		4,090		3,264
Temporary advances from the Central Bank		4,468		5,263		5,986		6,774		7,700		8,171
Promissory notes		697		960		1,143		1,739		2,191		92
Total short-term debt		5,165		7,778		8,438		10,467		13,981		11,526
Total performing debt		80,898		121,405		128,769		137,977		139,046		134,733

Non-performing debt(1)
Non-performing debt not yet due:
Medium-term and long-term debt:
Bilateral debt(2):
Paris Club		1,635		1,175		861		463		0		0
Other bilateral debt		1,162		809		618		458		347		299
Total bilateral debt		2,796		1,984		1,479		921		347		299
Private Creditors:
Suppliers		409		260		210		204		134		120
Commercial banks		1,055		825		646		138		108		93
Total debt to private creditors		1,464		1,085		857		342		243		213
Bonds:
Peso-denominated bonds		2,578		628		244		0		0		0
Foreign currency-denominated bonds		58,230		0		0		0		0		0
Total bonds		60,808		628		244		0		0		0
Total non-performing debt not yet due		65,068		3,697		2,580		1,262		590		512
Non-performing principal and interest arrears:
Bonds		39,724		0		0		0		0		0
Paris Club		1,151		1,411		1,946		2,610		3,133		3,208
Other bilateral debt		2,264		1,993		2,509		1,830		2,116		2,202
Commercial banks		841		620		758		907		897		874
Suppliers		1,363		100		163		141		193		137
Total non-performing principal and interest arrears		45,344		4,125		5,377		5,489		6,339		6,420
Total non-performing debt		110,411		7,822		7,956		6,751		6,929		6,932
Total gross public debt including arrears(3)	U.S.$	191,309	U.S.$	129,227	U.S.$	136,725	U.S.$	144,729	U.S.$	145,975	U.S.$	141,665
Memorandum item:
Untendered Debt		-	U.S.$	23,556	U.S.$	26,076	U.S.$	28,857	U.S.$	28,984	U.S.$	30,004

	As of December 31,										As of September 30,
	2004		2005		2006		2007		2008		2009
Performing debt	U.S.$	44,696	U.S.$	59,771	U.S.$	63,926	U.S.$	69,977	U.S.$	70,062	U.S.$	70,406
Boden		12,964		14,339		15,417		15,417		15,746		13,343
Multilateral debt		30,639		25,296		15,189		15,050		14,769		15,326
Par Bonds		0		12,748		13,430		14,210		13,954		14,215
Non-transferable notes from the BCRA 2016		0		0		9,530		9,530		9,530		9,530
Discount Bonds		0		6,913		7,551		8,921		9,148		9,428
Bonar		0		0		2,500		5,574		5,574		5,574
Bilateral debt		242		211		93		986		928		1,511
Treasury notes		0		0		0		0		96		987
Promissory notes		0		0		0		151		163		92
Commercial banks		53		33		21		28		21		11
Bocones		20		17		13		11		6		5
Other		779		213		183		100		127		384
Non-performing debt		99,942		6,639		7,250		6,377		6,595		6,671
Non-performing debt not yet due		61,811		2,657		2,092		1,096		449		386
Non-performing debt arrears		38,131		3,982		5,158		5,281		6,146		6,285
Total foreign currency-denominated debt	U.S.$	144,638	U.S.$	66,410	U.S.$	71,176	U.S.$	76,354	U.S.$	76,657	U.S.$	77,077

	Fourth quarter
	2009				2010				2011				2012				2013
	Capital		Interest		Capital		Interest		Capital		Interest		Capital		Interest		Capital		Interest
Multilateral debt:
Inter-American Development Bank	$	238	$	89	$	844	$	354	$	841	$	315	$	794	$	276	$	726	$	242
World Bank		180		31		751		143		621		125		598		111		509		95
Corporación Andina de Fomento		12		8		52		19		67		18		84		16		86		13
FONPLATA		0		0		11		3		10		3		10		2		10		2
European Investment Bank		2		1		3		2		4		2		4		1		4		1
International Fund for Agricultural Development		1		0		1		0		1		0		1		0		1		0
International Monetary Fund		0		0		0		0		0		0		0		0		0		0
Total multilateral debt		433		129		1,663		521		1,544		462		1,491		407		1,337		353
Bilateral debt		42		22		254		49		289		41		342		31		231		21
Total official debt		475		151		1,916		571		1,833		503		1,833		438		1,569		374
Private creditors:
Suppliers		27		13		55		23		55		20		55		16		55		12
Commercial banks		9		0		0		0		0		0		0		0		0		0
Total private creditors		36		13		55		24		55		20		55		16		55		12
Bonds:
Bonds		7		548		2,431		1,821		3,927		1,743		2,427		1,676		2,245		1,661
Treasury notes		500		2		487		9		0		0		0		0		0		0
Promissory notes		0		0		92		0		0		0		0		0		0		0
Total bonds		507		550		3,009		1,829		3,927		1,743		2,427		1,676		2,245		1,661
Total performing foreign-currency denominated debt service		1,019		714		4,981		2,423		5,815		2,265		4,314		2,129		3,868		2,047

	2014				2015				2016				2017				2018
	Capital		Interest		Capital		Interest		Capital		Interest		Capital		Interest		Capital		Interest
Multilateral debt:
Inter-American Development Bank	$	691	$	210	$	604	$	181	$	557	$	157	$	542	$	134	$	468	$	112
World Bank		470		79		483		63		469		46		327		30		303		19
Corporación Andina de Fomento		77		11		67		9		67		8		65		6		64		5
FONPLATA		10		2		10		1		8		1		6		1		6		0
European Investment Bank		5		1		5		1		0		0		0		0		0		0
International Fund for Agricultural Development		1		0		0		0		0		0		0		0		0		0
International Monetary Fund		0		0		0		0		0		0		0		0		0		0
Total multilateral debt		1,253		303		1,169		255		1,101		212		941		171		841		136
Bilateral debt		86		15		86		10		84		5		10		1		6		0
Total official debt		1,339		317		1,255		265		1,186		217		950		172		848		136
Private creditors:
Suppliers		55		8		35		4		35		2		0		0		0		0
Commercial banks		0		0		0		0		0		0		0		0		0		0
Total private creditors		55		8		36		4		36		2		0		0		0		0
Bonds:
Bonds		0		1,750		5,818		1,750		9,530		1,291		2,081		1,165		0		1,092
Treasury notes		0		0		0		0		0		0		0		0		0		0
Promissory notes		0		0		0		0		0		0		0		0		0		0
Total bonds		0		1,750		5,818		1,750		9,530		1,291		2,081		1,165		0		1,092
Total performing foreign-currency denominated debt service		1,393		2,076		7,108		2,020		10,751		1,510		3,031		1,336		848		1,228

	Disbursements/Payments - Multilateral Lenders (in millions of U.S. dollars) As of December 31,															As of September 30,
	2004			2005			2006			2007			2008			2009
World Bank:
Disbursements	U.S.$	770		U.S.$	362		U.S.$	468		U.S.$	518		U.S.$	336		U.S.$	689
Principal payments		(860	)		(934	)		(1,143	)		(1,045	)		(940	)		(617	)
Principal payments, net of disbursements		(90	)		(572	)		(676	)		(527	)		(604	)		73
Interest payments		(241	)		(282	)		(339	)		(352	)		(252	)		(126	)
Payment of commissions		(4	)		(3	)		(3	)		(4	)		(5	)		(4	)
Net (outflows) inflows		(335	)		(858	)		(1,017	)		(882	)		(862	)		(57	)
International Monetary Fund:
Disbursements		3,451			—			—			—			0			0
Principal payments		(5,494	)		(3,589	)		(9,530	)		—			0			0
Principal payments, net of disbursements		(2,043	)		(3,589	)		(9,530	)		—			0			0
Interest payments		(553	)		(513	)		(81	)		—			0			0
Payments of commissions		(5	)		(5	)		0			—			0			0
Net (outflows) inflows		(2,600	)		(4,106	)		(9,611	)		—			0			0
Inter-American Development Bank:
Disbursements		344			597			1,133			1,507			1,231			1,014
Principal payments		(505	)		(536	)		(1,226	)		(1,525	)		(1,298	)		(614	)
Principal payments, net of disbursements		(161	)		61			(93	)		(17	)		(67.6	)		400
Interest payments		(423	)		(453	)		(484	)		(479	)		(425	)		(271	)
Payments of commissions		(5	)		(5	)		(3	)		(4	)		(4	)		(10	)
Net (outflows) inflows		(589	)		(397	)		(580	)		(500	)		(497	)		119
IFAD:(1)
Disbursements		1.6			3.5			5.1			3.9			3.1			0.4
Principal payments		(2	)		(2	)		(3	)		(4	)		(4	)		(1.4	)
Principal payments, net of disbursements		—			1			2			—			(1	)		(1	)
Interest payments		—			—			—			—			(1	)		(0.2	)
Payments of commissions		—			—			—			—			0			0
Net (outflows) inflows		(1	)		1			1			(1	)		(1	)		(1	)
FONPLATA:(2)
Disbursements		12.0			11.2			19.7			26.3			15.7			4
Principal payments		(4	)		(4	)		(6	)		(8	)		(5	)		(9	)
Principal payments, net of disbursements		8			7			14			18			11			(5	)
Interest payments		(1	)		(1	)		(3	)		(4	)		(5	)		(5	)
Payments of commissions		—			—			—			—			0			0
Net (outflows) inflows		6			5			10			14			6			(10	)
Corporación Andina de Fomento:
Disbursements		—			34			64			328			286			151
Principal payments		—			—			—			(10	)		(22	)		(12	)
Principal payments, net of disbursements		—			34			64			319			264			139
Interest payments		—			(1	)		(4	)		(11	)		(20	)		(21	)
Payments of commissions		—			(1	)		(1	)		—			(2	)		(1	)
Net (outflows) inflows		—			31			59			307			242			117
The European Investment Bank
Disbursements		—			—			—			—			—			—
Principal payments		(7	)		(2	)		(3	)		(3	)		(3	)		(2	)
Principal payments, net of disbursements		(7	)		(2	)		(3	)		(3	)		(3	)		(2	)
Interest payments		(9	)		(3	)		(2	)		(2	)		(2	)		(1	)
Payments of commissions		—			—			—			—			—			—
Net (outflows) inflows		(15	)		(5	)		(5	)		(5	)		(5	)		(3	)
Total disbursements		4,578			1,007			1,689			2,384			1,871			1,859
Total principal payments		(6,871	)		(5,067	)		(11,911	)		(2,594	)		(2,272	)		(1,255	)
Principal payments, net of disbursements		(2,293	)		(4,060	)		(10,222	)		(210	)		(400	)		604
Total interest payments		(1,227	)		(1,254	)		(913	)		(848	)		(706	)		(424	)
Total commissions		(14	)		(15	)		(7	)		(8	)		(12	)		(15	)
Total net (outflows) inflows	U.S.$	(3,534	)	U.S.$	(5,329	)	U.S.$	(11,142	)	U.S.$	(1,067	)	U.S.$	(1,118	)	U.S.$	165